QDII managers cautious about using RMB options
While the move is regarded as a step forward for the country’s financial markets, fund managers are still weighing up the costs and benefits of the hedging tool.
Qualified domestic institutional investor (QDII) fund managers are weighing the costs and benefits of using soon-to-be available RMB options to hedge against foreign exchange risk.
China is set to launch the tool on its interbank market in April, the State Administration of Foreign Exchange (Safe) announced this week.
A circular on its website reads: “As China’s yuan exchange rate is becoming more flexible, enterprises’ and banks’ demands for hedging tools are on the rise, which boost…
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