The FSC Strengthens the Supervision of TRFs Amendments of the Regulations Governing Internal Operating Systems and Procedures for Banks Conducting Derivatives Business

As Renminbi is expected to continue appreciating in the past few years, Renminbi-linked TRFs are very popular with domestic investors. However, Renminbi has depreciated hugely and unexpectedly since August 2015, and many investors suffered significant losses as a result. Once investors failed to perform their obligations under the agreement with the banks, banks would have to absorb huge losses, and eventually resulted in turmoil in financial markets and endless investment disputes. ... More