Chinese corporates shunned hedging during tariff upheaval
Amid the ongoing US-China trade war this year, Chinese exporters chose to hold steady on their hedge ratios, according to dealers, owing to high hedging costs and expectations of a stable spot rate.
Exporters accumulate US dollars from foreign sales, and many have held on to those dollars in anticipation of continued strengthening against the Chinese renminbi that began in 2022.
But when the renminbi began rising after the ‘liberation day’ tariff announcement in April, the significant interest
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