Chinese firms are ramping up FX hedging via derivatives as yuan strength threatens export earnings. Net outstanding forward settlement contracts hit a record $107 billion in February, per the State Administration of Foreign Exchange. The surge reflects strong FX conversion, improved US-China ties, dollar weakness, and firm central bank fixing, which have driven the yuan higher since November, alongside robust export performance, said strategist Fiona Lim.

2026-03-18

Chinese firms are ramping up FX hedging via derivatives as yuan strength threatens export earnings. Net outstanding forward settlement contracts hit a record $107 billion in February, per the State Administration of Foreign Exchange. The surge reflects strong FX conversion, improved US-China ties, dollar weakness, and firm central bank fixing, which have driven the yuan higher since November, alongside robust export performance, said strategist Fiona Lim.