Hyperdrive
China Lithium Giant Plans to Build a $1.1 Billion Trading Desk
- Derivatives desk to be tasked with reducing financial risks
- Company also eyes $200 million bond to fund Argentina project
A Ganfeng battery production factory.
Source: Ganfeng Lithium Group Co.
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Battery-material giant Ganfeng Lithium Group Co. said it would set up a derivatives-trading desk, in a sign the industry is seeking to hedge against risks after a period of extreme volatility and geopolitical tensions.
Derivatives will be used to lower the risks of cross-border investments and to enhance financial stability, the Chinese producer said in a statement on Monday, with the largest position for a single day of no more than 8 billion yuan ($1.1 billion). The desk will trade instruments linked to equities, indexes, commodities and rates, it said, without giving details of staffing or location.