Opening Salvo in a Brutal Derivatives Battle

By reporters Wu Ying and Zhang Yuzhe

( Magazine) With the permission of the Chinese government's State-owned Assets Supervision and Administration Commission (SASAC), a group of state-owned enterprises (SOEs) have sent legal warnings to six international investment banks over derivatives trade losses, has learned.

Sources at SASAC, intermediary agencies and investment banks confirmed that the legal documents sent to investment banks in mid-August described Chinese investigations into commodity derivatives contracts bought by SOEs.