The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

FX news: China to launch CNY onshore currency options

China’s State Administration of Foreign Exchange, or Safe, has announced that onshore CNY option trading will be allowed from April 1.

Only vanilla European-style options (those with exercise permitted only on the expiry date) will be allowed; the option cut will be 3pm Beijing time and trading hours 9.30am to 4.30pm, the same as the onshore spot FX market.

Chinese companies will only be able to buy options and only for hedging – not speculative – purposes (although previously purchased options may be sold if the hedge is no longer required.) Furthermore, in an edict that appears at first glance to be a denial of the existence of put/call parity, Safe has ruled that companies may only purchase (USD) call options and not puts.

Banks that are qualified to trade in the onshore market will need to apply for separate licences to trade with other banks and with corporate clients.

Delta exposure will of course be included in banks’ net currency positions and these will need to continue to comply with the net-long-US-dollar-position policy required by Safe.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree