Kerry Properties denies involvement in speculative derivatives

Nov. 20, 2008 (China Knowledge) - Kerry Properties Ltd<683>, one of Hong Kong's largest real estate developers, Tuesday announced that it is not involved in any kind of speculative derivatives or structured product transactions, market sources reported.

The company made this announcement in response to the recent market rumors saying it has suffered financial losses as a result of investment in speculative derivatives or structured product transactions.

Kerry Properties also said the above-mentioned market rumors are both untrue and unfounded.

The use of interest rate and currency swaps, which is described on page 39 of the company's 2007 Annual Report, aims solely to hedge its borrowings during the normal course of business and these contracts have no material impact to the company's financial results, the property firm added.

Shares of Kerry Properties went down slightly by 0.98% to close at HK$12.08 on Wednesday.