Risk recycling issues stall China's forex option market
Onshore corporates yet to take advantage of more hedging options
A significant relaxation of the rules surrounding Chinese corporates' use of foreign exchange options last year has not driven a material increase in volumes as the limited risk-recycling opportunities for dealers mean pricing is still high, according to Chris Allington, Singapore-based head of global FX for Standard Chartered.
In August 2014, China's State Administration of Foreign Exchange allowed corporates to sell options; previously, they were only allowed to use forwards or buy options to
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