Strengthening Exchange Rate Risk Management to Safeguard the Stable Development of Foreign Trade

At present, the global economic and financial landscape is complex and highly volatile, with heightened fluctuations in international foreign exchange markets and a marked increase in exchange-rate uncertainty—factors that have become key determinants of the stable operation of international business. To proactively address the challenges posed by exchange-rate volatility and comprehensively strengthen all employees’ awareness of exchange-rate risk management, Be proficient in using scientific risk-avoidance tools, Continuously enhance expertise in foreign exchange operations to support the high-quality development of international business. On March 3, Jisteel Supply Chain Company organized a specialized training session on managing risks associated with foreign‑exchange rate fluctuations and on the application of foreign‑exchange derivatives as hedging instruments. The company’s leadership team, key business personnel, finance staff, and employees in related roles attended the training.

This training session We have specially invited relevant leaders from the Jinan Branch of the Industrial and Commercial Bank of China, along with international business experts, to deliver on-site lectures. As a large state-owned commercial bank, the Industrial and Commercial Bank of China (ICBC) boasts a global service network, a well-established foreign‑exchange business framework, a full suite of FX derivatives, and extensive practical experience gained from long‑term engagement with major multinational enterprises. It is a key partner for corporate currency‑risk management. During this specialized training session, ICBC’s team of experts leveraged its professional strengths to precisely address our company’s operational pain points and risk‑control needs, seamlessly integrating market dynamics, regulatory requirements, tool applications, and best‑practice guidelines. The result was authoritative, cutting‑edge, and highly pragmatic guidance, providing robust support for our effective management of exchange‑rate volatility risks.

At the training session, experts from ICBC closely examined the current macroeconomic environment and foreign‑exchange market trends, 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, accessible explanations of the logic behind exchange‑rate fluctuations and their influencing factors, while systematically covering the identification of FX exposure in cross‑border operations, quantitative risk assessment, and hedging strategies. Particular emphasis was placed on practical tools, including forward‑contract settlement to lock in FX exposure, risk‑reversal option combinations with broad settlement‑direction ranges to enhance pricing flexibility, and proportional option structures for optimizing settlement prices. Drawing on real‑world business scenarios and representative case studies, the experts thoroughly elucidated the appropriate use cases, operational nuances, and risk‑control considerations for various hedging products. They encouraged participants to transcend conventional thinking, adopt fresh perspectives and innovative strategies to address the challenges posed by exchange‑rate volatility, and strengthen the risk‑management framework underpinning high‑quality development. Attendees listened attentively and engaged actively, engaging in in‑depth discussions with the experts on issues such as currency‑hedging and cross‑border settlement encountered in their day‑to‑day operations. The atmosphere was highly conducive to learning, not only enhancing participants’ understanding of exchange‑rate risks and their awareness of risk‑mitigation measures but also equipping them with hands‑on expertise in using FX hedging instruments, thereby bolstering their professional capabilities to manage exchange‑rate volatility and safeguard cross‑border business operations.

This specialized training session is organized by the company. Actively respond to the Group’s deployment requirements for large-scale training initiatives, Strengthen the risk prevention and control system and enhance core business capabilities. This is an important initiative and a vivid demonstration of deepening bank‑enterprise cooperation to jointly promote the development of foreign trade. Moving forward, the company will take this training as an opportunity to further strengthen its strategic partnership with the Industrial and Commercial Bank of China, continuously refine its foreign‑exchange risk‑management framework, and optimize its international business model, translating the outcomes of the training into tangible results that bolster risk control and drive growth. At the same time, we will remain committed to compliance first, risk management paramount, and value creation at the core, leveraging more professional expertise, more rigorous governance, and more prudent operations to proactively address market challenges and vigorously advance the high‑quality development of our international business.