The demand for hedging has surged, urgently needing foreign exchange futures to fill the "last mile".

Since the beginning of this year, overseas economic uncertainty has significantly increased, and the risk of exchange rate fluctuations in the foreign exchange market has also risen. For a foreign trade practitioner, a prepayment of $50,000 could shrink by 3,000 RMB in a single day due to exchange rate fluctuations. Behind such "small accounts" reflects the exchange rate risks faced by companies in cross-border transactions, as well as the growing importance of foreign exchange risk management. Since 2015, the number of domestic listed companies participating in foreign exchange hedging has surged from 143 to 1,241, an eightfold increase. Foreign exchange futures, as a key tool for hedging, not only provide a standardized and highly liquid trading method, but also help companies manage exchange rate exposure more flexibly, thus improving hedging efficiency. Industry insiders believe that there is a growing demand for standardized and highly liquid RMB foreign exchange futures. The introduction of this key tool will fill the "last mile" of China's exchange rate risk management system, providing market participants with more convenient hedging options.