Citic Pacific Ltd seems to be in a bad position. An executive working at Citic seemingly violated procedures by investing in the Australian Dollar, the Euro, and the Chinese yuan without proper approval. When the dollar surged against the Australian dollar and the Euro, Citic Pacific was exposed to unlimited losses due to their investing in major Hong Kong banks using a so-called “accumulator” position.

The company would face a loss of about HK$14.7 billion based on current forex levels; however, as it intends to mark the contracts to market on Dec. 31, the actual loss could be higher or lower. Citic Pacific had already realized losses of HK$807.7 million on the forex contracts as of Friday. Citic Pacific plans to realize all of the losses this year, so they won’t affect the company’s 2009 results.

Citic Pacific had been suspended from trade in Hong Kong on Monday and is expected to fall sharply when it resumes Tuesday.