top of page

BoC settles over half of cases in oil product losses - sources

BEIJING, May 13 (Reuters) - Bank of China (BoC) has settled with more than half of customers hurt by losses in a crude oil-linked product after a historic oil price slide into negative territory, two sources with direct knowledge of the matter said.

China’s fourth-largest bank last week offered to shoulder all losses from the fall into negative territory and compensate up to 20% of investors’ original investment, Reuters reported. The deal will lead to a total 6-7 billion yuan ($1.84 billion) hit for BoC if all loss-recording investors settle.

The offer came after the bank said in late April it had settled trades for its crude oil futures trading product, also known as crude oil “bao”, at minus $37.63 per barrel, leaving mainly retail investors deep in the red.

Bank of China declined to comment.

0 views0 comments

Recent Posts

See All

Good News On the Jobs Front

This jobs number should ease some recession fears, although next weeks CPI will be a key indicator as we all know. Payrolls were up 372,00 better than expected with the unemployment rate remains at 3.

More Products to Manage Risk

It is incredible the products the CME Group keep developing to efficiently manage risk. Coming in October they will be releasing products that lenders and other institutional financial market users wi

CME to Launch New Lumber Futures Contract

The CME in August will be introducing a new Lumber Futures Contract that is very beneficial to hedgers. Her are the highlights... New Lumber futures and options Launching on August 8* Th


bottom of page