Risk recycling issues stall China's forex option market

Onshore corporates yet to take advantage of more hedging options


A significant relaxation of the rules surrounding Chinese corporates' use of foreign exchange options last year has not driven a material increase in volumes as the limited risk-recycling opportunities for dealers mean pricing is still high, according to Chris Allington, Singapore-based head of global FX for Standard Chartered.

In August 2014, China's State Administration of Foreign Exchange allowed corporates to sell options; previously, they were only allowed to use forwards or buy options to

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: