Dealers bet on onshore commodities units in China

The local touch

Chinese companies recorded 11.4 billion renminbi ($1.4 billion) of mark-to-market losses from over-the-counter derivatives contacts with a notional value of 125 billion renminbi during 2008, according to the State-owned Assets Supervision and Administration Commission (Sasac). The revelation of losses sparked a backlash against foreign financial institutions that had sold these contracts and has restricted derivatives activity with Chinese entities, ever since.

What stood out about the Sasac sta