Strengthening Risk Prevention and Control to Safeguard Stable Foreign Trade Development

Currently, the global economic and financial landscape is complex and ever-changing, with increased volatility in the international foreign exchange market and a significant rise in exchange-rate uncertainty, which has become a key factor affecting the stable operation of international business. To proactively address the challenges posed by exchange-rate fluctuations and comprehensively enhance all employees’ awareness of exchange-rate risk management, Master scientific risk-avoidance tools. Continuously enhance professional skills in foreign exchange services to support the high-quality development of international business. On March 3, Jigang Supply Chain Company organized a special training session on the prevention and control of foreign exchange rate fluctuation risks and the application of foreign exchange derivatives hedging tools. Members of the company’s leadership team, key business personnel, financial staff, and employees in related positions attended the training.

This training Special guests—including relevant leaders from the Jinan Branch of the Industrial and Commercial Bank of China and international business experts—will be attending to deliver the lecture in person. As a large-scale state-owned commercial bank, the Industrial and Commercial Bank of China (ICBC) boasts a global service network, a well-established foreign exchange business system, a full range of foreign exchange derivatives instruments, and extensive practical experience gained from long-term service to major multinational enterprises. It is an important partner for companies seeking to manage exchange rate risks. During this specialized training session, ICBC’s expert team fully leveraged its professional strengths to precisely address our company’s key business challenges and risk-control needs. By integrating market trends, policy requirements, tool applications, and operational standards, the team provided participants with authoritative, cutting-edge, and pragmatic professional guidance, offering robust support for our company to effectively manage the risks associated with exchange rate fluctuations.

At the training session, ICBC experts closely examined the current macroeconomic situation and trends in the foreign exchange market. Focusing on key topics such as the reform of the RMB exchange rate formation mechanism and the concept of exchange-rate risk neutrality, they provided clear and concise explanations of the logic behind exchange-rate fluctuations and the factors influencing them. They systematically covered the identification of foreign exchange exposures in cross-border operations, quantitative risk assessments, and hedging strategies. Special emphasis was placed on practical tools including forward FX settlement for locking in foreign exchange exposures, wide-range risk-reversal option combinations for enhancing price flexibility in FX settlement direction, and proportional option combinations for optimizing FX settlement prices. Drawing on real-world business scenarios and typical case studies, the experts thoroughly explained the applicable contexts, operational highlights, and risk-control considerations for various hedging products. They encouraged participants to break free from conventional thinking patterns and adopt new perspectives and strategies to tackle the challenges posed by exchange-rate volatility, thereby strengthening the risk-defense capabilities necessary for high-quality development. The participants listened attentively and actively engaged in discussions with the experts, exchanging insights on practical issues such as FX hedging and cross-border settlements they encountered in their daily work. The learning atmosphere at the session was highly engaging and productive. Participants not only enhanced their understanding and awareness of exchange-rate risks and risk-management practices but also mastered the hands-on techniques for using FX hedging instruments, significantly improving their professional competence in dealing with exchange-rate fluctuations and safeguarding against risks in cross-border transactions.

This special training session is organized by the company. Actively respond to the Group’s deployment requirements for large-scale training. Strengthen the construction of the risk prevention and control system and enhance core business capabilities. This is an important initiative and a vivid practice for deepening cooperation between banks and enterprises and jointly promoting the development of foreign trade. Moving forward, the company will take this training as an opportunity to continue deepening its strategic partnership with the Industrial and Commercial Bank of China, constantly improving its foreign exchange risk prevention and control system, optimizing its international business model, and translating the outcomes of the training into tangible results that effectively mitigate risks and drive development. At the same time, we will remain committed to compliance first, risk management paramount, and efficiency as our core principle. With more professional capabilities, stricter management, and more稳健 (stable and prudent) operations, we will proactively address market challenges and wholeheartedly promote high-quality development of our international business.