Photo: Reuters/Jason Lee

Shen Hong reported for the Wall Street Journal Monday that China’s foreign exchange regulator, the State Administration of Foreign Exchange, has approved the use of derivative products for hedging against currency risk. The move is part of an effort to attract more foreign investment which currently only accounts for 1.3% of China’s bond market. Recent estimates from Goldman Sachs also indicated that inclusion into the three main global bond indices would bring $250 billion into China’s bond markets.

One reply on “China allows foreign investors to hedge currency risk: WSJ”

Comments are closed.