Hi Mark -

You're right.  Only 3 types of institutions have the capacity and authority 
to enter into derivatives transactions in the PRC.  They are:
a. banks;
b. non-bank financial institutions ("NBFI"); and
c. foreign invested enterprises ("FIE").

Banks and NBFIs require banking licences and may only enter into derivative 
transactions for hedging purposes.  FIEs comprise (i) wholly foreign owned 
enterprises ("WFOE"); and (ii) sino-foreign owned joint ventures ("SFJV") and 
include foreign banks, foreign finance companies and bank branches . There 
are no specific restrictions for WFOEs but SFJVs may only enter into 
derivative transactions for hedging purposes as well.    State-owned 
enterprises and collectively-owned enterprises  can therefore only transact 
through a duly authorised bank or NBFI.  So it looks as if China National Oil 
Company (Corp.?) and China State Power Corp. do not have the capacity nor the 
authority to enter into derivative transactions themselves in the PRC.

I believe  that Nony has our Legal Survey on PRC on file so you might wish to 
pass to Cynthia a copy of  the PRC Derivatives Transctions Guide for her to 
look at.  It's a good snapshot of the issues which are encountered in the PRC.

Regards,
Anita