As one of the damaged investors, Hunan Yiyang lawyer Wu Jun asked the regulatory authorities to intervene in the investigation. Wu Jun said that this is also the voice of other investors.
Editor’s note: This article comes from the WeChat public account “Radar Finance” (ID: leidacj) , author : Radar editorial department.
Produced by Radar Finance | Changfan Liang Fuchun Edit | Deep Sea
The Bank of China crude oil treasure incident continues to ferment. On April 23, Bank of China A shares plunged 1.98%, the second largest decline in the entire banking sector, and the market value evaporated to 20.607 billion yuan.
The so-called crude oil treasure is a product launched by the Bank of China in January 2018 to provide domestic individual customers with trading services linked to overseas crude oil futures. Among them, the US crude oil varieties linked to CME’s first contract of WTI crude oil futures. Individual customers must submit a 100% deposit for “Crude Oil Treasure” and do not allow leveraged trading.
On April 19, the Bank of China informed investors by text message and APP that it would start the shift at 22:00 on April 20. After 22 o’clock, investors can no longer trade.
After 22:00 on April 20, the WTI crude oil futures contract price in May continued to fall, and broke through the negative value for the first time, and finally fell to -37.63 US dollars / barrel. The bank determines that the settlement price will be -37.63 USD / barrel.
According to this calculation, many investors of Crude Oil not only have no hope of principal, but also owe huge amounts of funds to banks. According to investors, many investors have been deducted the deposit.
Many investors believe that settlement should be calculated at 22:00 on April 20th, rather than -37.63 USD / barrel. In addition, investors generally stated that there are loopholes in crude oil treasure product design, imprudent management, and inadequate risk control measures.
As one of the damaged investors, Hunan Yiyang lawyer Wu Jun asked the regulatory authorities to intervene in the investigation. Wu Jun said that this is also the voice of other investors.
Large accounts have to pay the bank tens of millions
“Crude oil treasure was recommended to me by a branch governor of the Bank of China at the end of March this year. At that time, I could take a look. It happened that the international oil price fell, and I thought it was a better investment opportunity.Wu Jun, a Bao investor and a lawyer from Hunan Yiyang, told Radar Finance that he had only started to build a warehouse of twenty or thirty barrels at the beginning, and continued to add more since then, until April 18, he held a position of about 1,200 barrels.
However, contrary to Wu Jun ’s increasing position, the price of WTI crude oil May futures contracts continued to decline, but Wu Jun did not take the initiative to move positions or close positions. In this regard, Wu Jun said that although it was always in a loss state at the time, it was firmly optimistic that crude oil would rise.
In addition, Bank of China’s announcement and risk warning that the move from contract 05 to contract 06 has a premium of about US $ 6 (about 40 yuan), which Wu Jun believes is acceptable.
“According to the SMS message from Bank of China that day, it means that the transaction will be stopped at 22:00 and the transfer will be started. My understanding is that the transfer will be carried out at 22:00, because the contracts of other banks have already moved.” Wu Jun said that he had an early break on April 20. On the 21st, he saw that WTI crude oil fell to -37.6 US dollars, while the amount shown by Bank of China E-Finance was the same as April 20. He was secretly lucky.
However, BOC does not settle the price at 22:00 on April 20. On the evening of April 22, Bank of China officially released the “Notes on Crude Oil Business”, saying that BOC launched the “Crude Oil” product in January 2018 to provide domestic personal customers with trading services linked to overseas crude oil futures. Make trading decisions.
BOC confirmed that it will be delivered on the 20th according to the official settlement price of the WTI crude oil May futures contract CME (-266.12 yuan / barrel). Based on this price, Wu Jun ’s current loss is about RMB 530,000.
Wu Jun ’s loss is not the worst among investors. Liu Wei (pseudonym) of the energy industry told Radar Finance that the amount of the loss was about 16,000, and as far as he knows, there are 40,000 barrels of large accounts, which is 1,000 times its position.
According to the settlement price of the Bank of China, in addition to losing 5.86 million principals, the large account also needs to post 10.64 million to the bank, with a total loss of 16.5 million.
Large households need to pay 10 million Liu Wei for picture
Liu Wei said that more than ten million large-scale households have lost more than one.
It is worth mentioning that the crude oil treasure investor group has a wide range of sources, even including college students and seniors in their 70s.
“Because the originalThe price of oil is very low, and it is cheaper than water, so I want to take advantage of it. Xiaojie, a student at a university in Anhui, told Radar Finance that when he searched for “crude oil” through the Bank of China APP, he discovered the product Crude Oil. Xiaojie invested nearly 4,000 yuan in principal, which not only lost money, but also fell. Lost to BOC.
According to the surging news reports, after the crude oil was put through the warehouse, there were 750,000 old people losing money at the age of 70, and it was not known that they owed millions to the bank.
Bank of China has deducted some investor deposits
After crossing positions, the Bank of China has begun to take action. Many investors reported that during the early hours of April 23, the Bank of China withdrew the deposit from its crude oil account.
The Bank of China stated that in the case of insufficient crude oil margin, if there are still positions that require 100% top-up margin, otherwise it will be regarded as arrears, and the bank has the right to apply to the People’s Bank of China to include the arrears record in its credit.
Many investors expressed dissatisfaction with the behavior of BOC.
Liu Wei initiated #BOC to freeze the crude oil account of users and who will bear the loss # topic on Tencent News, raising multiple questions.
Tencent news topic section initiated by Liu Wei
Liu Wei told Radar Finance that Crude Oil is an electronic disk business of the Bank of China and is a type of wealth management business. In its publicity, Bank of China did not emphasize high risks. “Little white men” only need to make a simple risk assessment through the bank APP, and can make purchases if they reach a balanced investor.
“What is a balanced investor in the eyes of a bank? When evaluating the risk of a balanced product, Choose 10-30% of the principal loss, you can pass the evaluation. As a result, not only do you have to lose all your principal, but you also need to post upside down. “Liu Wei said.
Liu Wei believes that the Bank of China has loopholes in risk prevention and control. As early as April 15th, the Chicago Mercantile Exchange (CME) reprogrammed the software-making crude oil futures fall to a negative value and still able to complete the contract settlement and delivery. Many banks, including ICBC, moved positions in advance, however, Crude Oil did not move at all, and did not even support negative value transactions. During this week, Crude Oil’s “little leeks” did not receive any risk warnings, but only received two text messages that the Bank of China did not have any pains to move the warehouse.
Liu Wei also pointed out that the Bank of China mentioned that Crude Oil Bao stopped trading at 10 pm on April 20 and started shifting positions. However, after four and a half hours, the Bank of China began to shift positions with a low of -266.12 yuan / barrel, causing heavy losses to investors.
Many impaired investors also pointed out that BOC has set a 20% mandatory liquidation line, but the actual operation has not been strictly implemented, that is, the price has fallen below the 20% margin and the position has not been closed. According to the contract, BOC defaulted and should bear the corresponding losses.
Question for Weiqiang. Bank of China said: “For crude oil products, when the market price is not negative, the long position will not trigger a forced liquidation. For those who have determined to enter the transfer or due to the settlement of the difference, the customer will be processed at the settlement price due , No longer staring at the market and strengthening the flat. “
It is worth mentioning that on April 23, Bank of China A shares fell 1.98%, the second largest decline in the entire banking sector, and the market value evaporated to 20.607 billion yuan.
The damaged lawyer requested an investigation into the warehouse-breaking incident
Regarding the Bank of China ’s liability in this crude oil incident, some lawyers believe that the Bank has not fulfilled its due obligations, its risk control has serious non-compliance issues, and its ability to judge financial systems and systems cannot meet the required standards Investors can sue for all the book losses suffered after the Bank of China is required to bear the time node of the position shift.
A lawyer in Beijing said that BOC stated that a 20% mandatory liquidation line was set, but the actual operation was not strictly implemented, that is, the priceOpen position below the 20% margin. According to the contract, BOC defaulted and should bear the corresponding losses.
Attorney Xu Feng, a partner of Shanghai Chuangyuan Law Firm, told Radar Finance that it is difficult to judge who is right and what is wrong with investors and the Bank of China. But we should pay attention to the appropriateness of investors. Why do many small investors participate in such high-risk products?
Senior commodities analyst at a domestic institution believes that the core point of the crude oil incident is not price volatility, and the core should be whether banks have taken corresponding risk control measures. Did the risk control work? Why is it not done? This needs to be explained clearly.
As one of the damaged investors, Wu Jun asked the relevant departments to investigate the behavior of BOC and its staff who neglected their duties and caused huge property losses to the country and the majority of investors.
Wu Jun said that according to media reports, the Chicago Mercantile Exchange data shows that the final contract at the settlement price of -37.6 US dollars reached 77,076 contracts, each contract of 1,000 barrels, a total of 7,7076,000 barrels of crude oil was traded near the settlement price. Assuming that the average price for opening a position is $ 20, the total loss in the final settlement is as high as $ 4.466 billion, or about 31.5 billion yuan. Since other institutions have shifted their positions long ago, there was only one Bank of China on the field at the time. The Bank of China may account for the vast majority of the 31.5 billion yuan in losses.
“As an ordinary investor, we cannot know what operations the Bank of China has carried out from 22:00 on April 20th to 22nd, and how much it played a role in the plunge of crude oil prices. Bank of China Online Banking Why APP and E Ronghui APP failed to automatically close positions is unknown. “Wu Jun said that as an investor, he believes that there are errors in the design of Bank of China’s products and operations during this period.
Wu Jun said that the loss of position caused great losses to the Bank of China and investors. As investors, they cannot know the whole truth, but these losses, whether borne by investors or by the Bank of China, are The loss of China and the Chinese people. Because of the liquidation of this position, many investors have been ruined. Even if the Bank of China requires investors to make up for the settlement, most investors will not be able to make up the money. The final loss will still be borne by the Bank of China.
“Bank of China has always claimed that crude oil treasure is a low-risk investment product, but this time the position is cut, not only will the investors lose all their principals, but also bear the compensation equivalent to twice the principal.” Wu Jun said As an investor, I urge the relevant departments to thoroughly investigate the operation of the Bank of China during this period, and return the truth of the majority of investors to allow the Bank of China and its staff to be punished for the illegal and criminal acts.
Wu Jun said that this is also the voice of other investors.
Note: This article is original from Radar Finance (ID: leidacj). Unauthorized reproduction is prohibited.