SOEs lose US$1.67 bln due to derivative exposure
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Sixty eight state-owned central enterprises have suffered a net loss of 11.4 billion yuan ($1.67 billion ) on financial derivatives trading by the end of October, the State-owned Assets Supervision and Administration Commission (SASAC) announced Thursday, xinhuanet.com reported.
The sixty eight companies engaged in derivatives activities with contract value of 125 billion yuan ($18.3 billion), according to the SASAC.
The financial derivatives market includes commodities, currency swap, interest rate swap, options and structured deposit. The domestic market is worth 35.7 billion yuan ($5.23 billion) with a floating net loss of 130 million yuan ($19 million), while the overseas market is valued at 89.4 billion yuan ($13 billion) with a floating net loss of 11.2 billion yuan ($1.64 billion).
