Chinese companies are increasingly seeking protection from the swinging yuan, with regulatory encouragement encouraging this trend. The trend is breaking records and is being encouraged in part by authorities. While short-term risk-aversion is driving investors, businesses, and other participants into the dollar, it is expected that as exporters reduce their dollar exposure, this could set the yuan higher as exports boom. The foreign-exchange regulator and central bank have encouraged some Chinese banks to promote the use of hedging tools and increase their companies' hedging ratios, which will become part of regulatory checks on lenders. The People's Bank of China (PBO) has also encouraged some banks to increase their corporate clients' hedming ratios to roughly 40%, up by eight percentage points from 2020.