Research On Financial Derivatives Trading Of State-owned Enterprises

CAO from 2003 to 2004 in trading oil derivatives generated $5.54 billion huge losses, leading companies have to file for bankruptcy protection, the events on the one hand, makes a huge state-owned assets loss, on the other hand makes listed in overseas funded enterprises reputation damaged.This event is not so much a company to participate in the hedging of negative materials, rather than the negative material of corporate governance. Through the study found that CAO has a good risk management system, but it has not been implemented, the fundamental problem of the corporate governance issues.With the RMB to join SDR, the RMB in the process of becoming the international currency has made a big step forward, but the RMB exchange rate flexibility is bound to expand, the risk will increase, financial derivatives have a good role in the management of price risk, but the proportion of the use of derivatives tools is very low, optimistic estimates, and even less than 40%, and domestic enterprises lack of deep understanding of derivatives, in the process of the use of derivatives is easily turned into speculation, originally in order to avoid risks,but infact increase their risk. The use of derivatives to avoid price risk is essential for enterprises to become bigger and stronger, taking into account the proportion of the current use of derivatives is very low, it can be expected that the future will have more enterprises to participate in derivatives trading, and good corporate governance system and risk management system is the key to the success of enterprises involved in derivatives trading.Unreasonable corporate governance system of state-owned enterprises, become the most fundamental reason for the loss of CAO, the same problem is not only in CAO, there are a lot of companies have such problem. so the reform of state-owned enterprises, the establishment of a modern corporate governance system is imperative. As countries thirteen five planning proposals explicitly writes: "to deepen the reform of state-owned enterprises and enhance the vitality of the state economy's control, influence, and anti risk ability. Classification to promote the reform of state-owned enterprises, improve the modern enterprise system."This paper takes the form of case analysis, introduces the whole process of CAO loss event, and points out the problems of CAO in corporate governance and derivatives trading, andconcludes: "to achieve the steady operation of the company, the corporate governance system is the guarantee, the standard operation of derivatives is the foundation, the two aspects are indispensable." The purpose is to allow domestic enterprises to learn the lessons of the incident, and better participate in derivatives trading.