{
  "id": 7288991,
  "title": "China urges more FX hedging as strong yuan hits exporters, sources say",
  "url": "https://urgent.news/2026/09/14/china-urges-more-fx-hedging-as-strong-yuan-hits-exporters-sources-say",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-14T09:43:30.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/currencies/articles/china-urges-more-fx-hedging-094330539.html"
  },
  "original_language": "en",
  "account": "On September 14, China's foreign exchange regulator instructed banks to encourage corporate clients to engage in more currency hedging, amid concerns over the yuan's steady appreciation, according to sources with knowledge of the matter. This informal guidance, termed \"window guidance,\" was issued in recent months, reflecting authorities' worries about foreign exchange losses among exporters, a key sector in a sluggish economy. The move also suggests policymakers want companies prepared for further yuan gains or increased volatility, with the yuan having risen 4.3% year-to-date and trading near a four-year high against the dollar. Bloomberg News broke the story first. Financial regulators have not yet commented on the directive. The guidance urges banks to raise foreign exchange hedging ratios, the proportion of clients' currency exposure protected. Some SAFE branches have even subsidized companies that escalated their hedging, covering part or all of their currency options premiums. Banks in provinces with weaker trade activity are being asked to match the national average hedging ratio, while lenders in export-oriented coastal provinces are encouraged to push ratios to 40% or higher. The sources spoke on condition of anonymity as they were not authorized to discuss the issue publicly. Chinese companies have been increasingly using derivatives to hedge against currency exposure as a stronger yuan has hurt exports and, more recently, as the Iran war has heightened market volatility. Foreign exchange derivative contracts signed by corporates hit nearly $1.4 trillion in the first half of the year, up about 40% year-over-year, while the nationwide FX hedging ratio rose to 35.3%, up 5.3 percentage points from the end of 2025, according to SAFE data. Despite expectations that yuan gains may slow, they continue to hurt exporters, with Goldman Sachs analysts finding foreign exchange losses in the first half of the year hit their highest in a decade, accounting for around 4% of total earnings. However, these losses remain manageable given the substantial earnings growth generated by export-oriented companies.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Investing.com",
        "title": "China urges more FX hedging as strong yuan hits exporters, sources say",
        "url": "https://urgent.news/2026/09/14/china-urges-more-fx-hedging-as-strong-yuan-hits-exporters-sources-say-7308152",
        "published": "2026-09-14T11:49:09.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}