RMB hedging comes onshore as regulators liberalise FX market
Foreign investors turn to CNY for bond hedges as rule changes spur more competition
Investors are increasingly hedging the foreign exchange exposures from their Chinese bond portfolios in the onshore market, following recent rule changes that have opened the market up to more competition.
Banks say hedging costs have fallen as a direct result of legislation passed in January to allow foreign investors to hedge currency risk arising from exposure to the onshore interbank bond
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