Business Case Studies, Govenrment and Business Environment Case Study, China Aviation Oil's Collapse: Singapore Inc's Challenges

print page
Tell A Friend

Case Categories

Govenrment and Business Environment Case Study

Case Title:

China Aviation Oil's Collapse: Singapore Inc's Challenges

Publication Year : 2005

Authors: Mercy Mathew & Srinath Manda

Industry: Transportation


Case Code: GBE0069

Teaching Note: Not Available

Structured Assignment: Not Available

Buy This Case Study

China Aviation Oil (CAO), voted as the most transparent company listed on Singapore Exchange, had collapsed because of a $550 million loss in speculative oil trading in 2004. This was the second major derivative scandal at the Singapore Exchange. The first one was the collapse of UK's Barings Bank in 1995. The derivatives scandal raised considerable concern on the creditability of Singapore as a secure financial destination, which until then had the reputation of being Asia's best-regulated financial centre. Also, questions were raised about corporate transparency among Chinese companies and the role of independent directors.

Pedagogical Objectives:

  • To discuss to impact of CAO scandal on the credibility of Singapore as to a secure financial destination.

Keywords : China Aviation Oil Corp Ltd, China Aviation Oil Holding Company, Nick Leeson ‘Rogue Trader’, Barings Bank, Derivative scandal, Finance Case Study, Speculative oil trading, Oil swaps, Speculation and straddle, Hedging, Corporate transparency, Singapore Stock Exchange (SGX), Chinese state-owned enterprise, Lee Kuan Yew, Corporate governance, Jet Aviation Fuel Company

Recently Bought Case Studies

    Recently Bought Case Studies

    Executive Interviews

  • David ConklinDavid Conklin

    David Conklin, is a professor at the Richard Ivey School of Business
    Speaks on Government and Business
  • Lord Meghnad DesaiLord Meghnad Desai

    Lord Meghnad Desai, is an Indian-born British economist and Labor politician
    Speaks on Government and Business
  • Vijay GovindarajanVijay Govindarajan

    Vijay Govindarajan, is widely regarded as one of the world’s leading experts on strategy and innovation
    Speaks on Reverse Innovation
  • View All Executive Interviews»

Contact us: IBS Case Development Centre, Survey No. 156/157, Dontanapalli Village, Shankerpalli Mandal, Ranga Reddy District, Hyderabad-501203, Telangana, INDIA, E-mail:

©2020-2025 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap