12 Oct 2004, Joseph Radford, Risk magazine
Under new regulations, which came into effect on March 1, licensed local and foreign banks can trade derivatives on their own accounts for profit. Previously, derivatives could only be used for hedging.
The rules also allow licensed foreign banks to conduct business directly with domestic corporate clients onshore. Before, they were restricted to trading foreign currency-denominated derivatives with Chinese financial institutions that had appropriate foreign exchange licences.
© Incisive Media Investments Limited 2013, Published by Incisive Financial Publishing Limited, Haymarket House, 28-29 Haymarket, London SW1Y 4RX, are companies registered in England and Wales with company registration numbers 04252091 & 04252093