Newsletter summary
SMIC (00981) launches financial derivatives to hedge foreign exchange and interest ratesRoyale777Designed to enhance financial soundness, with a plan size of no more than 50% of net assets
Text of news flash
SMIC (00981) recently announced that in order to effectively guard against foreign exchange rate and interest rate risks that may be faced by the company and all wholly-owned or controlling subsidiaries, the company has taken measures to improve its ability to cope with such volatility risks and to enhance its financial stability. As part of its strategy, SMIC plans to hedge foreign exchange and interest rates through financial derivatives. The size of the hedging business of the company and its subsidiaries is not expected to exceed half of the audited net assets in 2023. The actual credit line or margin occupation scale will be adjusted according to the specific business needs of the company. SMIC also revealed that the funds for the hedging business will come from the company's own funds, funds obtained through debt financing, and funds raised through other channels permitted by laws and regulations. This reflects SMIC's forward-looking and conservatism in financial risk management.
