| The tools of risk management in the international market usually include forward contract, futures, options and swap. As the main tool in china forward contract has some limitation to use, so it's very important for Chinese enterprise to find effective tools to manage exchange risk.The basic character of the system for foreign exchange management in china is free exchange in trade item existing with strict control of exchange in capital item,.As a large scale listed company, the main business area of it include trade, shipping service, and industrial manufacturing. In this text I will make a analysis for techniques in management of foreign exchange debt finance.NDF means that currency of not free exchange was trade in the forward contract by the way of not delivery. Such as Company Z, It can use the big difference of exchange rate between the spot market in on-shore market and NDF forward market in the off-shore market, which means that Company Z can borrow US Dollar in one year term at spot market and convert it into RMB Yuan and buy the future UD Dollar in one year term at the NDF market, at the clearing date, Company Z can gain both in the exchange rate and interest rate.Company Z can use it's foreign branch to make finance in the international market in the way of collateral of stand-by time charter, revolve time charter and trade contract so as to meet time requirement in decision of capital investment and finance.The control of foreign exchange has good and bad side for a country. Usually the way to be able to avoid the control is more effective for enterprise although it appears easy at some time.
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