BEIJING (Reuters) – China’s financial regulators will ban banks and insurance firms from providing over-the-counter derivative trading products to individual clients, part of measures to step up risk control of the sector.
Lenders and insurers will also be banned from providing derivatives trading services to corporate clients for non-hedging purposes, the People’s Bank of China (PBOC), the China Banking and Insurance Regulatory Commission (CBIRC), the China Securities Regulatory Commission (CSRC) and the State Administration of Foreign Exchange (SAFE) said in draft rules published on their websites on Friday.
Non-financial institutions will be banned from providing derivative products or products with derivative features, they said.
(Reporting by Samuel Shen, Kevin Yao and Cheng Leng; Editing by Toby Chopra)
