State firms' hedging deals under lens

SHANGHAI: State-owned firms looking to hedge their losses from rising crude oil prices will now be supervised more stringently.

The State-owned Assets Supervision and Administration Commission (SASAC) has required companies under its control to scrutinize hedging deals more closely while signing financial derivatives contracts.

The move follows rising book losses from hedging contracts suffered by such State-owned firms as China Eastern Airlines and Air China, who have only recently begun to narrow down such losses-on-paper from former hedging deals.