Li Bin, spokesperson of the State Administration of Foreign Exchange and Deputy Director, stated that in the next steps, the agency will continue to strengthen foreign exchange risk hedging services for enterprises, supporting them in better focusing on their core businesses and defending against risks.

Li Bin, spokesperson and deputy director of the State Administration of Foreign Exchange, stated on the 15th that in recent years, there has been increased volatility in the international financial markets, leading to a rising demand for companies to proactively identify and manage exchange rate risks in cross-border trade and investment. The State Administration of Foreign Exchange has been continuously improving its services for enterprise exchange rate risk management, focusing on the following areas: Firstly, promoting the concept of exchange rate risk neutrality through various means such as publishing the "Enterprise Exchange Rate Risk Management Guidelines" and a collection of scenarios and examples of foreign exchange derivative product usage. A special section dedicated to enterprise exchange rate risk management services has been established on the official website of the State Administration of Foreign Exchange to actively promote good practices and experiences in exchange rate risk management. Secondly, facilitating the establishment of a sustainable mechanism for financial institutions to manage exchange rate risk. Currently, over 120 banks of various types offer foreign exchange derivative product services, with continuous improvement in online trading mechanisms and strengthening of grassroots operational capabilities. Thirdly, enhancing the service capabilities of foreign exchange market infrastructure, reducing transaction and settlement costs related to foreign exchange derivative products for small and medium-sized enterprises, expanding the trading and settlement periods for foreign exchange derivative products, and guiding financial institutions to continually optimize exchange rate hedging products and provide more convenient services. It has been observed that an increasing number of enterprises are incorporating currency fluctuations into their daily financial decisions and are managing exchange rate risks through various means such as foreign exchange derivatives, local currency settlements, and operational natural hedging. The awareness and capabilities of enterprise exchange rate risk management continue to improve. Over the past five years, the scale of enterprises using foreign exchange derivatives to manage exchange rate risks has surpassed $1.9 trillion in 2025, nearly double that of 2020. The corporate foreign exchange hedging ratio is currently at 30%, an 8-percentage point increase from 2020. In the next step, the State Administration of Foreign Exchange will continue to strengthen its services for enterprise exchange rate hedging in collaboration with relevant parties, supporting enterprises in focusing on their core businesses and mitigating risks. Efforts will be made to promote the concept of exchange rate risk neutrality, share typical cases among the foreign exchange management department, self-regulatory mechanisms of the foreign exchange market, and banks to provide useful references for enterprises to identify exchange rate risks and formulate hedging strategies, and guide financial institutions in establishing a sustainable mechanism for serving enterprise exchange rate hedging.Additionally, measures to further support enterprises in currency hedging were announced by Deputy Governor Zou Lan. Measures include supporting compliant and trustworthy enterprises in conducting foreign exchange derivative transactions more conveniently, simplifying business processes, and facilitating enterprises to hedge effectively.