Bank of China’s note on the situation of “Crude Oil” products
Bank of China launched the “Crude Oil” product in January 2018, which is an individual in China Customers provide trading services linked to overseas crude oil futures. Among them, the US crude oil variety is linked to the first contract of Texas Light Crude Oil (WTI) futures on the Chicago Mercantile Exchange (CME).
Since this year, international crude oil prices have fluctuated violently and investors have frequently traded. Since April 6th, BOC has provided targeted risk warnings to “Crude Oil Bao” customers through SMS, phone, public account, official Weibo and other channels, especially after April 15th risk warning. April 20 is the current settlement date of “Crude Oil” US crude oil products, about 46% of BOC customers take the initiative to liquidate and leave the market, and about 54% of BOC customers move their positions or deal with due gaps ).
For the “crude oil” product linked to the negative settlement price of the WTI May contract, BOC continued to communicate with relevant market institutions to negotiate on the market ’s abnormal performance on April 20. Bank of China will continue to do its utmost to safeguard the interests of customers, and will keep in touch with customers in the future regarding progress.
Bank of China is deeply disturbed by the losses suffered by customers in investing in “Crude Oil” products under the global spread of the epidemic and the volatile crude oil market. We have been actively listening to everyone’s voices and market concerns, comprehensively reviewing product design, risk management and control links and processes, undertaking the due responsibilities under the legal framework, working together with customers, and doing our best to protect customers’ legitimate interests.
Thank you for your attention and support to BOC.
Hereby explain
Bank of China Limited
April 24, 2020