Many enterprises will continue to lack a strong awareness of the volatility of international markets as China integrates further into the world economy, analysts said.

The war in Iraq may not have sparked abrupt fluctuations in the exchange rates of major currencies but analysts cited stronger risk awareness and broader use of financial derivatives readily available at commercial banks for enterprises.

They would boost protection of their increasingly world-connected business activities.

"Many still do not know (about risk-preventing financial derivatives), especially private enterprises and those that recently gained foreign trade licences," said Yuan Yuedong, financial markets director of the Institute of International Finance under the Bank of China - China's largest foreign exchange bank.

"So they need to raise their awareness of foreign exchange risks, and consult with banks."

As late as 10 years ago, cases were repeatedly reported of unprepared Chinese companies suffering huge losses as foreign exchange rates suddenly fluctuated.

Similar cases are still happening, though not in large numbers. Increasing numbers of companies are gaining foreign trade rights as part of the country's reform drives but more domestic banks are offering risk-prevention tools - from advance forex deals to currency swaps.

"Market potential is tremendous, as those who are doing (financial derivative transactions) are very small considering those that should be doing it," said a forex trader at the Industrial and Commercial Bank of China (ICBC), China's largest State-owned commercial bank.

"But market exploration does take great efforts in putting across benefits and risks to businesses," he said.

Those that were unprepared luckily escaped a potentially destructive exchange rate impact from the war in Iraq, which analysts say did not cause sharp movements in major currencies, because of its apparently swift conclusion.

"Movements (during the war) were no sharper than before or possibly after the war," said the ICBC trader who preferred not to be named. "As we can see, there was no apparent impact on Chinese companies (in terms of foreign exchange rates)."