An ICYMI from China's Banking and Insurance Regulatory Commission's (CBIRC's) efforts to stop lenders selling investment products linked to commodities futures to retail buyers
Info came via Reuters who cited three people with knowledge of the matter.
- also instructed lenders to completely unwind their existing books for these products
- "The risk contained in banks' commodity-linked investments cannot be easily spotted by ordinary investors, neither can they bear it," one of the sources said. "Banks also don't have enough expertise to run such products properly."
On this
- "Banks also don't have enough expertise to run such products properly."
Probably applies to many banks running their own books on such (and other) products right around the world, not only in China.
Link to Reuters for more if you are interested.
This continues the theme of Chinese regulators tightening up rules and enforcement of commodity markets in light of the high prices and volatility seen recently.
