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.
(Xinhua News Agency January 31, 2007)