# NDF

Hedge Funds Pile Into the Yuan as Big Asset Managers Hold Back

Hedge funds have been increasingly buying offshore renminbi positions and Chinese bonds, betting on further yuan appreciation after the currency breached 7 late in 2025. Large institutional asset managers remain cautious, citing process constraints, limited convertibility and uncertainty over China’s economic momentum, producing a market split that could amplify volatility if a Fed-driven dollar sell-off materialises.