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derivative investments

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derivative investments

Investments that rely on the performance of underlying assets in order to establish value and return profits.



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their derivative investments overseas and back out of high-risk contracts after several Chinese firms reported huge losses.
A year ago, Senators Ron Wyden (D-Oregon) and Charles Grassley (R-Iowa) released a discussion draft of a bill that would eliminate the favorable tax treatment of direct and certain derivative investments in oil, natural gas, or any primary product of oil or natural gas (such as diesel and gasoline), and solicited public comments on their draft proposal.
Earlier this year the state-owned Assets Supervision and Administration Commission ordered state firms to reconsider their overseas derivative investments and leave high-risk contracts after some suffered massive losses.
 
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