China's foreign exchange regulator has reportedly instructed banks to encourage more corporate clients to hedge currency risks, aiming to protect exporters from the yuan's sustained appreciation. The yuan has risen 4.3% this year, nearing a four-year high. Data shows that the total value of foreign exchange derivative contracts signed by companies in the first half of this year approached $1.4 trillion, a year-on-year increase of approximately 40%. The national foreign exchange hedging ratio reached 35.3%, up 5.3 percentage points from the end of 2025. Goldman Sachs analysts noted that exporters' foreign exchange losses in the first half reached approximately 70 billion yuan, a ten-year high, accounting for 4% of their total revenue.