Standard Chartered to provide staple commodity derivatives
(Xinhua)Updated: 2007-01-31 11:05
Britain's Standard Chartered Bank will provide risk solutions to
Chinese enterprises to help reduce their losses from price fluctuations of
staple commodities.
The bank has applied to the China Banking Regulatory Commission, the country's banking watchdog, to offer several commodity derivatives but enterprises will still rely on futures dealers to manage risk, said the bank spokesman.
He did not disclose the details of the commodity derivatives.
Standard Chartered Bank is expected to be the first foreign bank to provide such services in China if it can obtain regulatory approvals, reported Tuesday's China Securities Journal.
Staple commodities include precious metals, base metals, energy and farm produce. Price fluctuations of these commodities, which is greater than that of stocks, often cause enterprises and countries heavy losses.
Standard Chartered Bank, listed on the London Stock Exchange and the Hong Kong Stock Exchange, has a global network of 1,200 branches in 56 countries and regions.
The bank, with 20 outlets in 14 Chinese cities, plans to double its outlets in China over the next 18 months, in a move to cash in on the country's huge business opportunities.
(For more biz stories, please visit Industry Updates)
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