Free Republic

China state firms told to hold cash, hedge carefully BEIJING, Oct 12 — China's biggest state firms must highlight that "cash is king" in their 2010 budgets and control trading in financial derivatives, China's state asset watchdog said. The State-owned Asset Supervision and Administration Commission (SASAC) gave few details about its plans for derivative losses made by China's state firms. But SASAC said in a notice issued over the weekend that it did not want state firms to speculate in derivatives in 2010. "Any budget for financial derivatives should stick to the principal of risk hedging, and any trading scale...