Corporates in the Greater China region are demanding increasingly sophisticated financial instruments to hedge against risks in a volatile market and maximise funding efficiency, according to Credit Agricole Indosuez. The bank is the international banking and financial markets arm of France's biggest bank, Caisse Nationale de Credit Agricole, which acquired Banque Indosuez from Compagnie de Suez last December. It recently hired a four-person financial engineering team which previously worked at Banker's Trust in order to boost its capability to provide multi-product financial solution packages to clients. Members of the team include Ludwig Dong, Steven Shih, Lawrence Ma and Heng Qian, who will work under the direction of senior country officer for the mainland, Henri Fei, who also worked for Banker's Trust before June last year. Mr Shih, who is now a director of the bank, said the bank's immediate challenge was to provide clients with the right risk management products which help them survive and achieve financing goals in a volatile market. The Hang Seng China-affiliated Corporations Index, which traces the performance of 36 red-chip companies in Hong Kong, has dropped 93 per cent from its high of 4,221.52 in August to 2,186.32 last Friday. The plunge created an unfavourable environment for a lot of plans to inject mainland assets into those companies to proceed with. Mr Shih said in such an environment the bank would try to provide clients with financing solution packages with wide-ranged options. These include equity, derivatives, bonds or structured financing possibilities to meet their needs. He said Credit Agricole Indosuez would position itself as a one-stop provider of all financing solutions rather than the specialised product stream packages of its competitors. He said Banque Indosuez had a long history in Greater China while its brokerage arm, W I Carr, had renowned skills in financial derivatives. Credit Agricole Indosuez's existing clients include red chips China Resources Enterprise, China Merchants International, Cosco Pacific and Continental Mariner International.