Thursday, May 07, 2009

Review into investments by SOEs

CHINA'S state-owned asset regulator will launch an investigation into investments made by centrally administered state-owned enterprises in the financial sector in a bid to help them avoid risks.

A total of 28 SOEs, including Air China, China Eastern Airlines and China COSCO Holdings Co, have invested in financial derivatives but most of them suffered losses.

The overriding concern of the SOEs, when they invest in financial derivatives, is to ensure they avoid risks and not to speculate, said Li Wei, vice director of the State-owned Asset Supervision and Administration Commission.

Air China lost 7.5 billion yuan (US$1.1 billion) on fuel-hedging contracts by the end of last year, and China Eastern's wrong-way bets on hedging dragged its revenue down 6.4 billion yuan.

Li said SOEs which plan to invest in financial derivatives must meet four conditions - abiding by hedging rules, hiring financial institutions for consultation, controlling risks and getting the commission's approval.

"SOEs are short of financial talent to deal in such investments, which led to an underestimation of risks and violations, so the commission will issue suggestions after an investigation," Li said.

He also urged local state-asset regulators to investigate locally administered SOEs.

The SOEs have seen their first annual decline in net profit last year since 2002, diving more than 30 percent from a year ago to 665.29 billion yuan.

3 comments:

Anonymous said...

Good day !.
might , probably curious to know how one can manage to receive high yields .
There is no initial capital needed You may start earning with as small sum of money as 20-100 dollars.

AimTrust is what you need
AimTrust incorporates an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.

Its head office is in Panama with offices around the world.
Do you want to become an affluent person?
That`s your chance That`s what you wish in the long run!

I`m happy and lucky, I started to take up real money with the help of this company,
and I invite you to do the same. It`s all about how to select a proper partner utilizes your funds in a right way - that`s AimTrust!.
I make 2G daily, and what I started with was a funny sum of 500 bucks!
It`s easy to start , just click this link http://xygavydila.uvoweb.net/caqozu.html
and go! Let`s take this option together to become rich

Anonymous said...

Hello everyone!
I would like to burn a theme at here. There is such a thing, called HYIP, or High Yield Investment Program. It reminds of financial piramyde, but in rare cases one may happen to meet a company that really pays up to 2% daily not on invested money, but from real profits.

For several years , I make money with the help of these programs.
I'm with no money problems now, but there are heights that must be conquered . I make 2G daily, and my first investment was 500 dollars only.
Right now, I managed to catch a guaranteed variant to make a sharp rise . Turn to my web site to get additional info.

http://theinvestblog.com [url=http://theinvestblog.com]Online Investment Blog[/url]

Anonymous said...

Good day, sun shines!
There have were times of hardship when I didn't know about opportunities of getting high yields on investments. I was a dump and downright pessimistic person.
I have never thought that there weren't any need in big starting capital.
Now, I'm happy and lucky , I started to get real income.
It gets down to select a correct partner who utilizes your money in a right way - that is incorporate it in real business, and shares the profit with me.

You can ask, if there are such firms? I'm obliged to tell the truth, YES, there are. Please get to know about one of them:
http://theinvestblog.com [url=http://theinvestblog.com]Online Investment Blog[/url]

Enter your email address:

Delivered by FeedBurner