Sinomach holds exchange rate risk management research seminar

Representatives from the research team exchange their views on the results at the seminar on Nov 22. 

Sinomach held a seminar on Nov 22 to conclude its exchange rate risk management research project and exchange views on it. Wu Xiaohui, deputy general manager and chief accountant of Sinomach, attended the seminar. She summarized the project and said that the research results should be further applied in order to continuously improve the company’s exchange rate risk management ability.

Sinomach started its research work on exchange rate risk management in May 2018. Led by the asset and finance department of the company, a research team was set up with members from its headquarters and subsidiaries. Experts from the Beijing National Accounting Institute were also invited to participate in the research.

The research focused on the exchange rate risk management of the company. Utilizing real-life examples, the project carried out numerous theoretical and practical investigations in such fields as international engineering, international trade, investment and merger and acquisition.

The research report covers areas including the current state of the company’s exchange rate risk management, the foreign exchange market and foreign exchange derivatives, selection and combination of financial instruments, internal control of exchange rate risk management, practical examples of the company’s exchange rate management, confirmation and measurement of hedge accounting, and impact analysis and suggestions on financial statements.

The evaluation experts respectively expressed their views on the research results. They agreed that the project effectively combined theory with practice, achieved systematic results, and completed the research objectives. The results are instructive for Sinomach’s exchange rate risk management.

The experts also expressed hope that the company can do more in personnel training, policy guidance, and information and resource sharing to further elevate its professional standing.