Commodity Ban in China


China's ICBC Closes Commodity-Linked Products to New Investments: Industrial and Commercial Bank of China (ICBC) has suspended access for new investors to retail products linked to commodity futures due to extreme market volatility, including U.S. oil futures crashing below zero. Investors already holding ICBC’s commodity-linked retail products will not be able to add to their positions from Tuesday, but existing positions can be traded as normal, the bank said on its website on Monday. ICBC also warned retail investors they could lose all their investments and cash deposits in the commodity linked products. “The debate in China is about whether those products were suitable for the retail market,” a commodity source in China said. China’s regulator has told commercial banks to halt sales of a range of wealth management products that might result in unlimited investor losses, two sources told Reuters. Other state-run banks have also closed new investments in commodity-linked products, ranging from oil to soybeans to copper.

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©2020 BY QUANT TRADE, LLC. QUANT TRADE, LLC IS NOT RESPONSIBLE FOR CLIENT OR SUBSCRIBER LOSSES. TRADING FUTURES, STOCKS, FOREX AND OPTIONS INVOLVES THE RISK OF LOSS. YOU SHOULD CONSIDER CAREFULLY WHETHER FUTURES, STOCKS, FOREX AND OPTIONS ARE APPROPRIATE TO YOUR FINANCIAL SITUATION. YOU MUST REVIEW THE CUSTOMER ACCOUNT AGREEMENT AND RISK DISCLOSURE PRIOR TO ESTABLISHING AN ACCOUNT. ONLY RISK CAPITAL SHOULD BE USED WHEN TRADING FUTURES, STOCKS, FOREX AND OPTIONS. INVESTORS CAN LOSE MORE THAN THEIR INITIAL INVESTMENT. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING FUTURES OR OPTIONS CAN BE SUBSTANTIAL, CAREFULLY CONSIDER THE INHERENT RISKS OF SUCH AN INVESTMENT IN LIGHT OF YOUR FINANCIAL CONDITION. INFORMATION CONTAINED, VIEWED, SENT OR ATTACHED IS CONSIDERED A SOLICITATION.