By Jamil Anderlini in Beijing Wednesday Oct 22 2008 11:30 China\'s securities regulator has ordered a state-owned power group to cancel oil derivatives contracts it signed with a Goldman Sachs (NYSE:GS) subsidiary which would have exposed the Chinese company to losses if oil prices continued to fall.
Shenzhen Nanshan Power said company officials had signed two unauthorised hedging contracts in March with J. Aron & Company, a Singapore-based Goldman subsidiary.
The sudden move highlights how Chinese regulatory authorities are often accused of acting in the interest of state-owned companies.