Chart of the Day: Investors Flock to Offshore Yuan Futures Amid Trade Concerns

The number of U.S. dollar/offshore yuan (USD/CNH) futures traded in Hong Kong more than quadrupled year-on-year to 248,024 contracts in August, reaching the second-highest level in history, according to local stock exchange operator Hong Kong Exchanges and Clearing Ltd. (HKEX).

In July, the trading volume of Hong Kong’s USD/CNH futures reached a record high of 259,709 contracts, up more than 5.5 times year-on-year, and up 60% month-on-month.

The rising figures come at a time when market participants are looking for hedging instruments as the yuan faces depreciation pressure amid slowing domestic growth and ongoing trade tensions between China and the U.S.

HKEX launched USD/CNH futures in September 2012 in a bid to help investors manage their exposure to the offshore yuan.

Contact reporter Lin Jinbing (jinbinglin@caixin.com)