MNI BRIEF: Chinese Firms Increasingly Hedging Currency Risk

MNI (BEIJING) - Chinese firms are increasingly hedging their forex risk via derivatives, with  27% of companies using the instruments since the start of the year, an historical high, according to Li Hongyan, deputy director general at the State Administration of Foreign Exchange.

Li added the number of enterprises using the yuan for cross-border trade reached 30% this year, also a record.  

SAFE will closely monitor the international and financial environment and carry out counter-cyclical macroprudential adjustments to effectively maintain stable FX market operation, Li continued.