Lenovo turns to dim sum market to reduce forex hedging costs

Rising cost of CNY forwards and tighter regulation encourage renminbi funding

lenovo
Lenovo treasurer: Dim sum bond issuance has meant less reliance on using forwards for hedging

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 Glendi

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: