State-owned Assets Supervision and Administration Commission of the State Council, Circular on Further Strengthening the Regulation of Financial Derivatives Transactions of Centrally-governed Enterprises

国务院国有资产监督管理委员会关于进一步加强中央企业金融衍生业务监管的通知

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Centrally-governed enterprises may only trade derivatives for hedging.

Issued: February 3 2009

Main Contents: The Circular orders a screening of the financial derivatives transactions of centrally-governed enterprises targeting futures, options, forwards, swaps and the portfolio products thereof (including financial derivatives of offshore organisations purchased through banks). Speculative transactions such as transactions that exceed the business scope, positions that exceed the limit, and positions that are held too long shall be stopped immediately and withdrawn within a specified time limit (Article 1).

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