China’s foreign exchange regulator sets up yuan futures trading pilot – Journal


SHANGHAI, Dec. 1 (Reuters) – China’s central bank-led interbank foreign exchange market operator is forming a pilot project for yuan futures trading and ramping up research on the new product, said a state-backed newspaper said citing the group’s leader. Wednesday.

Zhang Yi, chairman of the China Foreign Exchange Trade System (CFETS), told the Shanghai Securities News that the group is assessing the impact of yuan futures trading on macroeconomic and monetary policy operations.

In the future, CFETS will look at how to design the mechanism, build the system and define its rules for the pilot, she said.

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His comments come after a former senior official at China’s foreign exchange regulator in June urged the rapid introduction of yuan futures trading, saying it could improve hedging in a forex market where the recent trend to l he yuan appreciation has been shaped by a “herd effect”.

A working paper released in April by researchers at the People’s Bank of China also called for the creation of a yuan futures market to help investors better hedge against currency risks.

China has already introduced currency derivatives, including futures, currency swaps and options.

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Reporting by Brenda Goh; Editing by Lincoln Feast.

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