BEIJING/SHANGHAI (Reuters) - Two main state-owned Chinese language banks warned on Monday that they may prohibit buying and selling of treasured me
BEIJING/SHANGHAI (Reuters) – Two main state-owned Chinese language banks warned on Monday that they may prohibit buying and selling of treasured metals and overseas change merchandise if this week’s U.S. presidential election fuels market volatility.
Financial institution of China <601988.SS> <3988.HK>, the fourth largest lender by property, mentioned it would curb or droop such commerce, whereas Financial institution of Communications <601328.SS> mentioned it was taking steps to doubtlessly restrict spreads and transactions through the election.
“We anticipate volatility within the treasured metals and overseas change market to extend considerably between Nov. three and Nov. 4,” Financial institution of China mentioned in a web-based assertion.
“Market liquidity will likely be notably lowered, and market dangers could intensify.”
The financial institution mentioned it would droop buying and selling of affected merchandise “underneath the intense situation of a liquidity crunch”, and cap buying and selling volumes through the election.
Financial institution of Communications mentioned it could make “versatile changes” and prohibit transactions based mostly on worldwide market quotations and market liquidity.
Each lenders mentioned curbs could be lifted as soon as the market stabilised, nevertheless.
Merchants and traders are intently watching the end result of the election, with Republican President Donald Trump trailing Democratic challenger Joe Biden in nationwide opinion polls.
(Reporting by Cheng Leng in Beijing and Andrew Galbraith in Shanghai)
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