Citic Pacific hit by target redemption forwards

Mining and manufacturing company Citic Pacific has informed shareholders its financial results will be affected by losses from leveraged foreign-exchange contracts including target redemption forwards. The losses have prompted the Hong Kong Securities and Futures Commission to begin an investigation into the company.

Citic Pacific, whose largest shareholder is Citic HK, a wholly owned subsidiary of Citic Group, the state-owned investment company of the People's Republic of China, held target red