SAFE recently opened the options trading market for RMB against foreign currency.
Lee & Lee Associates Comments: Domestic enterprises which shall conduct foreign currency transactions frequently or have material foreign currency assets or liabilities may be exposed to high foreign exchange risk and can consider reduce risk through tools such as that developed by SAFE above. Relevant Rule: “Notice of the State Administration of Foreign Exchange on Relevant Issues concerning Option Trading of RMB against foreign currency”, Huifa [2011] No.8
