Foreign exchange margin business
According to the notice of the CBRC, banking financial institutions that have started foreign exchange margin trading before the issuance of this notice are not allowed to provide this business to new customers, nor are they allowed to provide new transactions to customers who have already engaged in this business (except customer clearing positions).
For existing users, banking financial institutions shall, within 5 days after the issuance of this notice, submit the number of customers who have engaged in this business, the total amount of margin, the total amount of trading positions, the overall profit and loss of customers and the corresponding risk management measures currently taken to the CBRC in written form in duplicate. After that, submit the information of last month within 5 days of each month until the customers engaged in this business completely settle their trading positions.
The relevant person in charge of the China Banking Regulatory Commission said that after preliminary understanding, although banks can make profits by offering this business, the proportion of investors engaged in foreign exchange margin trading is very high at present, and 80% or even 90% of investors are at a loss. The probability of high losses and low profits for participants is similar to "gambling". Moreover, some banks still don't understand the reputation, law, market and operational risks brought by this business, and continue to prepare and prepare to start foreign exchange margin trading business.