Lenovo turns to dim sum market to reduce forex hedging costs

Rising cost of CNY forwards and tighter regulation encourage renminbi funding

Lenovo treasurer: Dim sum bond issuance has meant less reliance on using forwards for hedging

Lenovo, the world's largest maker of personal computers, finds itself in an atypical position for a Chinese manufacturer. Roughly a third of the company's sales are in its home market, giving it a high proportion of renminbi receivables. But its key suppliers – chip and hard drive manufacturers, for instance – are either based in the US or bill in dollars, meaning its cost base is stubbornly dollar heavy.

That makes hedging the renminbi/US dollar cross tricky, says Lenovo treasurer Damian