# Chinese firms rush to hedge as yuan swings begin to sting | South China Morning Post

> More Chinese companies are trading currency derivatives to hedge yuan risk as the currency's swings grow. The yuan slumped 6.5 percent against the dollar in 2016 and has surged 5.3 percent so far in 2017. Hedging markets remain immature, with restrictive central bank rules and limited speculator participation.

- Date: 2017-10-10 · published 2017-10-10T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/6416-chinese-firms-rush-to-hedge-as-yuan-swings-begin-to-sting-south-china-morning
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Rising hedging activity reflects larger currency exposure for Chinese importers, which can alter their purchasing timing. The direct price effect on feed commodities is minor.

## Read by commodity

- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2018-01-18 | [China says yuan gains market-driven, two-way swings will be the norm \| South China Morning Post](https://feedsoft.ai/events/67199-china-says-yuan-gains-market-driven-two-way-swings-will-be-the-norm-south-china.md) | -1.1% | -1.4% |
| USDCNY | 2017-01-18 | [Macroscope \| China still fighting an uphill battle to stabilise renminbi \| South China Morning Post](https://feedsoft.ai/events/11876-macroscope-china-still-fighting-an-uphill-battle-to-stabilise-renminbi-south.md) | +0.4% | +0.2% |
| USDCNY | 2019-01-22 | [Volatility expected for Chinese yuan, as experts diverge on 2019 outlooks \| South China Morning Post](https://feedsoft.ai/events/61315-volatility-expected-for-chinese-yuan-as-experts-diverge-on-2019-outlooks-south.md) | -0.5% | -0.3% |
| USDCNY | 2017-10-18 | [China has ‘halted intervention in yuan exchange rate market’ \| South China Morning Post](https://feedsoft.ai/events/68678-china-has-halted-intervention-in-yuan-exchange-rate-market-south-china-morning.md) | +0.2% | -0.0% |
| USDCNY | 2024-10-07 | [US election, jobs data to pressure China’s yuan as stimulus shores it up: analysts \| South China Morning Post](https://feedsoft.ai/events/11041-us-election-jobs-data-to-pressure-china-s-yuan-as-stimulus-shores-it-up.md) | +0.7% | +1.2% |

## Sources

- scmp.com: https://www.scmp.com/business/banking-finance/article/2114760/chinese-firms-rush-hedge-yuan-swings-begin-sting

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.