April 27, 2020 / 2:16 PM / a month ago

China asks banks to halt new sales of products that may lead to unlimited losses -sources

BEIJING/SHANGHAI, April 27 (Reuters) - The Chinese regulator has asked commercial banks to halt new sales of a wide range of wealth management products that might lead to unlimited losses for investors, two sources told Reuters.

At the weekend, China Banking and Insurance Regulatory Commission (CBIRC) gave verbal instructions to banks to halt new sales of products that could trigger open-ended losses for investors, and requested reports on the outstanding size of related products, according to two direct sources who are familiar with the matter.

CBIRC’s move came nearly a week after heavy losses were recorded in a crude oil futures trading product sold by the country’s fourth-largest lender, Bank of China (BoC) .

The CBIRC didn’t immediately respond to Reuters’ request for comment after working hours on Monday. BoC had no comment. (Reporting by Cheng Leng and Emily Chow; Editting by Shivani Singh and Hugh Lawson)

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