A Financial Times Service
China Confidential - Premium Investment Insight
14 September 2012

Hong Kong will launch its first-ever offshore renminbi (CNH) denominated futures to be traded on the city’s exchange next week, broadening the pool of CNH derivatives on offer. CME Group, meanwhile, recently announced plans to launch deliverable renminbi futures in coming months. In our view, these moves will (at most) give market participants another option to hedge foreign exchange risk. However, the CNH market continues to suffer from thin liquidity. Adding another product to the CNH menu is unlikely to address outstanding problems such as high hedging costs.

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CHINA CONFIDENTIAL

An integrated research service from the Financial Times that provides premium, exclusive analysis and predictions on China investment themes.

Using a dedicated FT team of specialists in China and the UK, it taps Chinese sources from the grassroots to the political elite to forecast key trends and issues. It conducts proprietary research to supply its own insights into industry trends and consumer sentiment. By filtering the work of the best Chinese analysts and academics, it keeps you current on key debates as they unfold inside mainland China. Its broad aim is to help the professional investor navigate through the Chinese investment landscape.

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