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China Top Regulator Warns Against Risks in Financial Derivatives – Bloomberg Law

June 10, 2021, 1:49 PM

China’s top banking regulator warned retail investors to avoid financial derivatives, stepping up a bid to curb risks amid rising volatility in global commodities.

Investors that speculate in currency, gold or other commodity futures are set to pay the same heavy price as those betting that property prices will never fall, said Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission.

Speculation in derivatives by ordinary people “is tantamount to disguised gambling, and their outcome of losses is preordained,” he said at the Lujiazui forum in Shanghai on Thursday.

Guo Shuqing

Photographer: VCG/Getty Images

With global commodities rising to records, Chinese …