From China Daily Online (link)
China plans to speed up development of derivatives to help companies and financial institutions hedge risks as the country moves toward a more market-oriented exchange rate system, banking regulators said Wednesday.
The loosening of the yuan’s decade- old peg to the dollar last year has led to a “significant increase” in foreign currency risks, Zhang Guangping, deputy director general of the China Banking Regulatory Commission, said in a speech in Shanghai.
The Shanghai-based foreign-exchange interbank market should “accelerate the pace of development of China’s derivatives market,” central bank Vice Governor Xiang Junbo said. The officials spoke at a ceremony to mark an agreement with the Chicago Mercantile Exchange that gives Chinese institutions and investors electronic access to currency and interest- rate products.
