Chinese Exporters Pile Into Currency Hedges as Yuan Volatility Rises

Chinese companies significantly ramped up foreign-exchange hedging in the first half of 2026 to protect overseas revenue as the yuan appreciated roughly 3.5% and currency markets faced heightened volatility.

Derivatives covered 35.3% of corporate forex transactions in the first six months, up 5.3 percentage points from 2025, according to Friday data from the State Administration of Foreign Exchange (SAFE). The value of newly signed hedging contracts surged 40% year-on-year to nearly $1.4 trillion.