The Zhitong Finance App learned that the latest data from the Hong Kong Stock Exchange shows that on October 27, Jinxun Resources (500) (03636) had a position change. The total market value of the inventory was HK$361 million, accounting for 149.90%. The company's shareholders deposited 14.2513 million shares in the Hong Kong and Shanghai HSBC Bank, reducing their shareholding ratio by 21.44%.
On October 20, Jinxun Resources announced that in order to reduce the risk caused by exchange rate fluctuations and not affect the normal production and operation of the company, the company and its subsidiaries plan to avoid the risk of exchange rate fluctuations by developing foreign exchange derivatives such as forward settlement and swaps. The operation process is that the company and its subsidiaries sign a forward settlement agreement with the bank, agree on the foreign exchange currency, amount, exchange rate and period for future settlement, and then process the settlement business according to the currency, amount, and exchange rate agreed in the contract on the expiration date, thereby locking in the current foreign exchange settlement cost.
The company and its subsidiaries are only allowed to conduct transactions with financial institutions that have been approved by the People's Bank of China and the State Administration of Foreign Exchange and have legal operating qualifications to carry out foreign exchange derivatives such as forward settlement and swaps. The business settlement currency is US dollars or other currencies. The funding source for this foreign exchange derivative business is the company's own capital and its subsidiaries. It does not use any raised capital, nor does it involve bank loans or other debt financing funds. The scale of the forward settlement and other services is expected to be no more than 50 million US dollars. According to the business conditions of the company and subsidiaries, the maximum delivery period is not more than 12 months, and is valid for 36 months from review and approval.