Tighter control of SOEs engaging in financial derivatives transactions

Amid large losses suffered by many state-owned enterprise such as Air China, China Eastern Airlines and China Southern Airlines resulting from their entering into (often complicated) financial derivatives transactions, the State-owned Assets Supervision and Administration Commission of the State Council (Sasac) recently issued its 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).