SHANGHAI, July 5 Reuters Chinese listed firms are embracing hedging at a record pace, according to consultancy data, as market volatility rises and China grows its derivative market.

During the AprilJune period, more than 120 Chinalisted companies in nonfinancial sectors unveiled plans for the first time to hedge risk using tools such as options and futures, the most for any quarter.

That brings the number of listed firms that announced hedging arrangements in the first half to more than 1,000, almost matching last year39;s total of 1,133, according to riskmanagement consultancy DUnion.

The popularity of hedging is due to rising uncertainties including foreign exchange risks, said DUnion CEO Ma Weifeng.

He added that China39;s more stringent disclosure rules around hedging could also contribute to the record quarterly number.

Forex hedging is popular among Chinese companies, according to DUnion, as regulators allow market forces to play a bigger role in deciding the yuan39;s value.

The yuan broke the psychologically important 7perdollar level in May, then slumped more than 5 against the greenback in the second quarter amid China39;s flagging postCOVID recovery.

Companies including Semiconductor Manufacturing Electronics Shaoxing Corp and liquor giant Luzhou Laojiao Co Ltd announced plans in the second quarter to hedge against forex risks.

Measures to develop China39;s derivative market also boosted interest in hedging, Ma said.

China39;s Futures and Derivatives…