In the February edition of China Law & Practice, UBS director of legal and compliance Li Lian Khoo said that she did not believe there was an antagonistic relationship between China and the international community over derivatives. “It would be more accurate to regard both sides as being at a crossroads and contemplating the best way forward.”
Among the various issues that have led to disputes between Chinese and foreign counterparties is the one over collateral. The financial crisis has encouraged Chinese banks and corporates to challenge collateral requirements demanded by foreign counterparties – because when a counterparty such as Lehman defaulted, companies that held a derivatives contract with that party found that they became unsecured creditors.
Interviewees:Weebin Tan (WT), director-legal, Barclays CapitalMartin Wong (MW), vice-president and assistant general counsel, Asia legal & compliance, JPMorganChin Chong Liew (CCL), partner, LinklatersCLP: To what...
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