Chinese state-owned businesses face tougher derivatives scrutiny

Hedging losses spur development of tighter rules

Chinese state-owned enterprises (SOEs) are likely to face more scrutiny from the country's regulators regarding their hedging of currency, commodity and interest rate risks.

The State-owned Assets Supervision and Administration Commission (Sasac) is working with Chinese supervisors to establish new rules limiting the use of derivatives by SOEs. Sasac controls 141 state-owned companies on behalf of China's parliament, the State Council. The new rules could be unveiled as early as February, say