Chinese companies are increasingly turning to foreign-exchange derivatives to shield themselves from currency fluctuations, while a strengthening yuan threatens to squeeze export earnings, as per a report by Bloomberg. According to data from China’s State Administration of Foreign Exchange, net outstanding forward settlement contracts climbed to $107 billion at the end of February, marking the highest level since records began in 2010, Bloomberg reported.The surge in hedging activity reflects a broader shift in currency dynamics in recent months. Stronger foreign-exchange conversions, signs of improvement in US-China relations, weakness in the US dollar, and consistent guidance from China’s central bank have…