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 market directly with domestic institutions rather than going via a custodian bank. An initiative in May

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.


Want to know what’s included in our free membership? Click here

This address will be used to create your account

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 individual account here