Heather:

Here is an excerpt from a message in which Anita Fam replies to my inquiry:

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 have also found a copy of the results of some legal research we had done a 
year or two ago on these issues.  If you or Cynthia would like to see it I'd 
be happy to send a copy on.