Derivatives

Kerry rejects rumours

PUBLISHED : Wednesday, 19 November, 2008, 12:00am
UPDATED : Wednesday, 19 November, 2008, 12:00am

Kerry Properties said the company was not involved in any kind of speculative derivatives or structured product transactions.

'The company's use of interest rate and currency swaps is intended solely to hedge the company's borrowings during its normal course of business. These contracts have immaterial impact [on] the financial position of the company,' it said in a statement yesterday.

Kerry said it had noticed there had been recent market speculation alleging the firm had suffered financial losses as a result of engagement in speculative derivatives or structured product transactions.

The market rumours are both 'untrue and unfounded', the statement said.

Shares in Kerry yesterday fell 0.81 per cent to HK$12.20.

Kerry Properties is controlled by the Kuok Group, the controlling shareholder of the SCMP Group, which publishes the South China Morning Post.