Huaneng Power International Financial Derivatives Hedging Case Studies

Starting in the 1980 s,with the development of international finance and trade liberalization,commodity prices and financial market volatility increases obviously,price risk associated with the continuously emerging.In 2008,the Wall Street financial giants lehman brothers fell into in the us subprime crisis,and then the U.S.subprime mortgage crisis in the ear trend sweeping the world,the global economic crisis.Financial derivatives is a double-edged sword,in this crisis,the financial derivatives as due to its leverage multiple magnified the effect of economic crisis and widely reviled,several large state-owned enterprises in our country took a hit in the crisis,if not a national rescue,is likely to face the risk of failure,there is also a corporate hedging has been going on,that does not appear on the huge losses appears to be a success,after analyzing the hedging is failure.How to correctly use financial derivatives for hedging success became a in front of people need to solve the problem.Hedging into purity and selective hedging,good corporate hedging is to be pure,or selective hedging.How to determine whether the corporate hedging is the standard of success? How the enterprises in the era of the economic crisis should use hedging strategy,all these problems to be solved.This article through to the use of huaneng power international financial derivatives,analyzes the background of the economic crisis in the United States,the implementation of interest rate swaps,fuel purchase commitment of hedging,found huaneng power international in hedging does not take into account the financial crisis in the process of monetary policy of the United States,the European Union after big background,for avoiding risk,lock cost purpose of hedging has brought the company financial derivatives trading losses.