The answer states that there is no need to use dim sum bond market, unless the entity has direct investment in China or may rereceive a better interest thereby.
My question is what about using of China currency for hedging purposes without direct investment in China (I.e. loan in non-related currency which is naturally a hidden hedge and which is reported like embeded derivative per IFRS, if I’m not mistaken). Would it worth a mark?
I think we must have different versions of the question.
I have the original exam question and it is about preparing a revised guidance manual. There is no mention of investing in China (or in any foreign country 🙂 )