Connect with us

Business

RPT-UPDATE 2-As Chinese banks end open positions in petroleum products, investors cry out

 


(Repeats without modification of the text)

April 23 (Reuters) – Chinese investors who have traded in the Bank of China (BoC) crude oil futures traders are concerned about the bank’s decision to settle trades at historic negative prices, saying that the bank should have done more to protect their interests.

Futures on the US WTI fell below $ 0 a barrel on Monday for the first time, ending at an astonishing minus $ 37.63 a barrel as traders paid to get rid of the oil.

Following the accident, the BoC on Wednesday stopped new positions on the product, also known as crude oil “bao”, or treasure.

He then said that its major investors “would settle their transactions on the basis of exchange rates” and that the bank had “completed the May contract expiration process in accordance with the previous agreement”.

Other banks have followed suit by stopping new posts for similar products, including China Construction Bank Corp and Chinese Bank of Communications Stephanie Peng, a second-year student at Hunan University, told Reuters that it had invested more than 70,000 yuan ($ 9,885) in BoC “bao” crude oil in early April, but lost everything, including a cash deposit of about 7,000 yuan.

BoC told her that they had settled the contract at a negative value and that she had recorded a total loss of 183,271.20 yuan from the investment. The BoC transferred 8,000 yuan from its bank account Thursday to amortize the loss.

“It’s all my scholarship money and my savings,” said Peng. “I haven’t told my family yet, and I hope to file a complaint with the China Banking and Insurance Regulatory Commission to protect my rights,” she said.

Peng said that BoC sent him a text message on April 20 informing him that the contract should expire on April 21 and make transactions if necessary, but did not inform him of any market risk.

“I thought it was a safe wealth management product, some of my classmates bought it, so I bought it too,” said Peng, citing BoC online marketing materials that positioned the “bao” as suitable for amateur investors.

Other BoC investors expressed frustration in discussion groups on Chinese social media platforms QQ and WeChat, saying the bank should have rolled over or settled contracts earlier.

The BoC’s “bao” is sold to individual customers and is linked to domestic and foreign crude oil futures, including West Texas Intermediate (WTI) and Brent.

Investors can choose for themselves when to raise positions or let the bank do it. If investors leave the rollover to the BoC, the contractual positions are renewed or settled on the day of expiry of the contract, according to a notice from the BoC published on its website on April 22.

Some investors Reuters spoke to said the BoC had issued no advance warning or signaled that prices could turn negative.

Zhang Qi, an analyst at Haitong Securities, said that the BoC’s information and risk disclosure were insufficient and that they had not managed the management of investor eligibility.

“I think BoC and CME both have a responsibility in this regard,” said Zhang, referring to the CME group, owner of the New York Mercantile Exchange, where the WTI trades for the time being.

“CME changed the trading rules and allowed the crude oil futures market to trade in negative territory at first, then the bank did not alert investors to the associated risks.”

CME, which updated its systems this month to deal with negative prices, told Reuters on Thursday that its markets were working as expected.

“Our futures prices reflect the fundamentals of the physical crude oil market, driven by the unprecedented global impacts of the coronavirus, including lower demand for crude oil, global excess supply and high levels of state storage usage. United, “said the exchange.

“After giving notice to our regulator and to the market in early April, the CME group accepted negative futures prices on the WTI on April 20 so that customers can manage their risk in the context of spectacular price movements, while ensuring the convergence of forward prices and spot prices. ”

When asked for comments, the BoC referred Reuters to its statement on Wednesday and said it had no other answer than that.

Another investor, Xie, told Reuters that he had invested 51,734 yuan in the BoC’s crude oil bao, but all he sees now is a zero when he opens his BoC investment app.

“I didn’t receive a warning that the price could go negative,” said Xie, who is in his late 20s.

“The impact (on me) is enormous, I dare not tell my family. I haven’t slept in 3 days, ”he added. “From now on, I’m going to work hard, it’s not worth playing (with such products).”

$ 1 = 7.0814 Chinese yuan renminbi
Report by Cheng Leng and Se Yong Lee in Beijing, Emily Chow
and Engen Tham in Shanghai; Shanghai additional reports
writing; edited by Himani Sarkar and Jason Neely

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos



picture credit

ExBUlletin

to request, modification Contact us at Here or [email protected]