China SAFE: To allow foreign investors in interbank bond mkt to conduct fx derivatives business

Spokesperson from the State Administration of Foreign Exchange (SAFE), China’s FX regulator, was on the wires last minutes via Reuters/ Bloomberg noting the following:

China SAFE to expand opening forex market

SAFE to allow foreign investors in interbank bond mkt to conduct fx derivatives business

Derivatives trading will only be allowed for hedging FX exposure in interbank bond market

Will be allowed to trade FX forwards, swaps and options

Central banks won't be allowed to trade under new rules

OTC derivatives can only be traded with banks