SHANGHAI (Reuters) – Industrial and Industrial Financial institution of China (ICBC) mentioned on Friday it’s going to limit sure kinds of retail companies involving foreign-exchange and commodities buying and selling.
The transfer by China’s largest financial institution comes alongside a spread of actions by regulators to curtail monetary dangers that embrace dampening commodity value rises, banning cryptocurrency transactions and limiting property hypothesis.
The financial institution’s restrictions additionally come as international vitality costs have surged in response to energy shortages in China and another components of the world.
ICBC mentioned in an announcement that beginning Oct 17 it’s going to droop new account openings for so-called “account foreign exchange enterprise”. Underneath this enterprise, people can commerce foreign exchange in opposition to the yuan for speculative or hedging functions, and can’t withdraw or switch the foreign currency from the buying and selling accounts.
Ranging from Nov 14, current shoppers will probably be barred from opening new buying and selling positions.
ICBC will even cease taking in new shoppers from Oct 17 in an analogous buying and selling enterprise involving vitality, base steel, agricultural merchandise and valuable steel indexes, ICBC’s assertion mentioned.
“Threat is excessive lately in international foreign exchange and commodities markets, so please take note of controlling dangers,” the financial institution mentioned.
In current months, ICBC and different banks, together with Financial institution of China and China Retailers Financial institution closed international trade buying and selling companies that had let particular person shoppers guess on non-yuan forex pairs.
Chinese language regulators have been tightening management over the nation’s forex market, Reuters reported final month.
Chinese language banks have been burnt by dangerous funding merchandise previously. Final 12 months, Financial institution of China’s shoppers suffered losses in a crude oil-linked product after a slide in oil costs.
(Reporting By Shanghai Newsroom; Modifying by David Goodman and Jane Merriman)
Copyright 2021 Thomson Reuters.
