Documentation fears slow CNY FX derivatives growth

Foreign fund managers need clarity before market can take off, say banks

Dealers say uncertainty over master agreements is hindering China's move to liberalise the market

Documentation issues are preventing global fund managers from taking advantage of China’s moves to open its onshore foreign exchange derivatives market to allow for hedging of positions on the local interbank bond market. 

International derivatives users typically trade under an International Swaps and Derivatives Association master agreement, but local banks usually have to use one from the Chinese equivalent, the National Association of Financial Market Institutional Investors (Nafmii). Many