HKEx’s RMB futures seminar held today with an overwhelming response from futures industry practitioners after the recent volatility in the RMB exchange rate.
More than 200 industry professionals from around 60 futures brokers attended this seminar and discussed how to effectively manage exchange rate risk.
Dr Ba Shusong, HKEx’s Chief China Economist shared his insights on RMB exchange rate policy. He said that with the inclusion of RMB in the International Monetary Fund’s Special Drawing Rights (SDR) basket of currencies, the RMB rate will be more susceptible to market forces.
In the new era of two-way volatility, price fluctuations in the offshore market has been more intense than in the onshore market, which shows there is greater need for exchange rate risk management in the offshore market compared to the onshore market, he said.
Steven Ren, HKEx Vice President for Market Development, gave an update on HKEx’s RMB currency futures contract, which is the most actively-traded on-exchange RMB futures contract in the world.
Because of the recent volatility in the RMB, the contracts hit a record open interest level of 30,792 contracts on 13 January, and turnover hit 6,425 contracts with a notional value of US$643 million on 7 January, the second highest ever.
Meanwhile, Kenneth Wong, HKEx Vice President for Fixed Income and Currency Development, answered questions on HKEx’s RMB currency futures products.
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