'Bleeding' from yuan devaluation, China Inc seeks hedging help

Hong Kong

CHINESE companies are seeking hedging services like never before after the yuan slid to a five-year low earlier this year.

Financial service provider KVB Kunlun Global Capital Ltd forecasts its foreign-exchange hedging business will double this year, as fears of further yuan drops linger even after the currency rebounded in recent weeks. Hedging volumes at the firm jumped more than 50 per cent in January-February from a year earlier, the sharpest two-month increase ever. Business also picked up at banks such as BNP Paribas, Hang Seng Bank and Bank of China Hong Kong Ltd.