Clarification of the report "the first 2 months of FX losses of 10 billions, first seen in 40 years"
2008-03-10
1.Name of the reporting media: Economic Daily News (Page A4)
2.Date of the report:2008/03/10
3.Content of the report:The first 2 months of FX
losses of 10 billions, first seen in 40 years
4.Summary of the information provided by investors: None
5.Company's explanation of the reportage or provided information:
The reported FX losses are not trading losses
but total hedging costs.
Various hedging methods implemented by Cathaylife Insurance
include tranditional forward contract, currency swap, and
cross currency swap and basket proxy hedge.
Cathaylife Insurance reiterated that foreign investment
is 100% hedged.
6.Countermeasures:None
7.Any other matters that need to be specified:None