Study On Strategy Of Foreign Exchange Derivatives Of Chinese Trade Enterprises

With the globalization and development of China's economic openness as well as the in-depth promotion of RMB exchange rate reform, the domestic foreign trade enterprises are in face of an increasing prominent risk of foreign exchange. As an effective tool to avoid exchange rate risk by foreign trade enterprises, foreign exchange derivatives can prompt China's foreign exchange derivative market and play a key strategic role in expanding China's opening to the outside world. Currently, foreign trade enterprises in China are confronted with issues related to foreign exchange derivative investment such as the big risk of trade credit, severe mentality of speculation arbitrage, unsound foreign exchange derivative market and lack of systematic market supervision mechanism. In face of the challenge of economic and financial globalization, how to take effective combining schemes on foreign exchange derivatives is a subject of foreign exchange asset management that shall not be neglected by global trade enterprises.By adopting methods like literature research, statistical analysis and case analysis, this paper first makes a definition to the concept of foreign exchange derivatives, discusses about the classification of foreign exchange derivatives and analyzes the functions and risk of foreign exchange derivatives. By taking the development of foreign exchange derivatives in the international market as a reference, an inspiration of developing China's foreign exchange derivative market is introduced. After that, an analysis of the market environment of foreign exchange derivatives about the foreign exchange assets by trade enterprises in China is conducted along with the discussion on China's exchange rate system evolution process and the elaboration of market development status of China's foreign exchange derivatives. Major issues existing in the market development of foreign exchange derivatives in China are explored and the necessity of the market development of foreign exchange derivative in China is discussed. Based on the SWOT analysis of foreign exchange derivative combination of the foreign exchange assets of trade enterprises in China, the strategic choice of the corresponding foreign exchange derivative combination is proposed. Specific to the perfection of market strategies about foreign exchange derivatives, the coping strategies towards foreign trade enterprises, and the measures of talent training and introduction, the implementation guarantees of foreign exchange derivative combination of the foreign exchange assets owned by China's trade enterprises are discussed. Finally, through the case analysis of GL Company, an in-depth research into the strategy of foreign exchange derivatives of the company's foreign exchange assets is carried out.