Lenovo turns to dim sum market to reduce forex hedging costs
Rising cost of CNY forwards and tighter regulation encourage renminbi funding
Lenovo, the world's largest maker of personal computers, finds itself in an atypical position for a Chinese manufacturer. Roughly a third of the company's sales are in its home market, giving it a high proportion of renminbi receivables. But its key suppliers – chip and hard drive manufacturers, for instance – are either based in the US or bill in dollars, meaning its cost base is stubbornly dollar heavy.
That makes hedging the renminbi/US dollar cross tricky, says Lenovo treasurer Damian
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