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China to ban banks, insurers from offering over-the-counter derivatives to individuals -Breaking

© Reuters. FILEPHOTO: On a cloudy day in Beijing (China), October 25, 2021, a woman is seen walking in the Central Business District. REUTERS/Thomas Peter

BEIJING (Reuters), – China’s financial regulators are banning banks and insurance companies from selling over-the counter derivative trading products directly to clients. This is part of a wider effort to increase sector risk control.

In draft rules, which were published by the three Chinese banks on Friday, they stated that insurers and lenders will be prohibited from offering derivatives trading services for corporate clients.

According to them, derivative products will no longer be provided by financial institutions.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.