China regulator reportedly calls on banks to unwind retail exposure to commodities-linked investment products
Reuters reportsThe report says that China's banking regulator has asked lenders to stop selling investment products linked to commodities futures to "mom-and-pop" buyers in order to curb investment losses associated with such products amid volatile prices.
Adding that the regulator has asked banks to unwind existing positions on these products, citing three sources familiar with the matter. One source said that:
"The risk contained in banks' commodity-linked investments cannot be easily spotted by ordinary investors, neither can they bear it. Banks also don't have enough expertise to run such products properly."
This adds to the measures by Chinese authorities as of late to try dial down the speculative rise in commodity prices in general, as seen here.