November 16, 2021
Scam/Fraud

China Top Regulator Warns Against Risks in Financial Derivatives

China’s top banking regulator warned retail investors to avoid financial derivatives, stepping up a bid to curb risks amid rising volatility in global commodities.

Investors that speculate in currency, gold or other commodity futures are set to pay the same heavy price as those betting that property prices will never fall, said Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission.

Speculation in derivatives by ordinary people “is tantamount to disguised gambling, and their outcome of losses is preordained,” he said at the Lujiazui forum in Shanghai on Thursday.

With global commodities rising to records, Chinese government officials are trying to temper prices and reduce some of the speculative froth. Wary of inflating asset bubbles, the People’s Bank of China has also been restricting the flow of money to the economy since last year, albeit gradually to avoid…

Read full article here: www.bloomberg.com