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Banking

China must develop financial derivatives, Xie says

(Agencies)
Updated: 2010-06-03 16:19
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China must develop financial derivatives to help banks hedge risks, Xie Duo, head of the financial markets department at the People's Bank of China, said.

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It is not enough for banks to use interest rates to manage all their risks, they need financial derivatives as substitutes for interest rates in managing risk, Xie told a conference in Beijing today.

The central bank has no timetable for introducing new financial derivative products, he said.