China urges more FX hedging as strong yuan hits exporters, sources say

China’s foreign exchange regulator has issued informal guidance to banks directing them to promote currency hedging among corporate clients, according to people familiar with the matter. The instructions, conveyed through local branches of the State Administration of Foreign Exchange (SAFE), aim to shield exporters from losses related to the yuan’s strengthening against the dollar. The yuan has risen 4.3% during the year and is trading near a four-year high, prompting regulatory con