TREE NEWS update: People’s Bank of China deputy governor and State Administration of Foreign Exchange head Zhu Hexin said on October 19 at the 2026 Financial Street Forum that China will push forward with opening its foreign exchange market and expand the pilot program allowing securities firms to conduct FX settlement and sales. Zhu also said authorities will support financial institutions in helping companies, especially small and medium-sized enterprises, manage currency risk and improve cross-border service capacity.
SAFE Chief Zhu Hexin Pledges Forex Market Opening, Expanded Broker FX Pilot
The signal here is institutional rather than directional: FX market opening is being paired with a broker-side pilot expansion, which suggests China is widening the set of intermediaries that can intermediate currency flows, not just loosening capital controls outright. The explicit SME hedging focus matters because it frames FX liberalization as a risk-management tool for smaller corporates, a constituency that has historically been underserved relative to large exporters. Whether the broker pilot broadens beyond securities firms, and how quickly hedging access actually reaches SMEs, is the open question worth watching.
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