Or China can consider to put all the foreign exposed firms into a group of portfolios and engage in a series of equity swaps to offset risk.
For China's US bond holdings, interest rate swap can be used to hedge the dollar and US interest rate risk.
The paper "You have more capital than you think" by Robert Merton, Nobel prize winner for Economics, has a section about this (published on Harvard Business Review Nov 1, 2005 issue)
