• News
    • Stocks
    • Banks and Finance
    • Companies
    • Crypto
    • Forex
  • Videos
  • Articles
    • Forex CRM
    • Crypto Payments
    • Copy Trading
    • Crypto Exchange Business
    • Forex Business
    • Fintech
    • Liquidity
  • Liquidity Providers List
  • Crypto Payment Providers

Dark Theme

Another Chinese Bank Halting Forex Services Amid Volatility Concerns

Sep 1 , 2021

Another Chinese Bank Halting Forex Services Amid Volatility Concerns

A tier-one state-owned institution that earned Beijing's ire earlier this year for breaking norms and regulations has unexpectedly declared it will shut down its foreign exchange trading operation, the second significant Chinese bank service cut this year.

Huaxia Bank tried to play down the worries and misunderstandings that emerged after it withdrew its first online notice on Monday and published an amended statement on Tuesday.

The Beijing-based bank stated in its first announcement that it will halt offering personal foreign exchange sales and purchases on December 1 “due to changes in market conditions.” Customers were concerned that they would no longer be able to exchange their yuan for foreign currencies, but this was not the case.

Huaxia later clarified that the temporary adjustments were due to the bank's implementation of "optimisation" improvements, rather than altering market circumstances. It also clarified that it was halting the conversion of freely convertible foreign currencies into other freely convertible foreign currencies – such as buying US dollars in exchange for Japanese yen – but that the move would have no effect on the conversion of yuan into foreign currencies and vice versa.

According to Reuters, the move comes as China's currency regulator, the State Administration of Foreign Exchange, has been conducting a rare survey of banks and companies on how they manage their currency exposure and use hedging tools, indicating that authorities are bracing for currency volatility.

As the US Federal Reserve and other major central banks wean economies off massive pandemic-era stimulus, Ken Cheung Kin-tai, senior Asian foreign exchange strategist at Mizuho Bank, said, related business services are being tightened at Chinese banks because of expectations of potentially sharp currency volatility. Huaxia did not specify when the suspended services will be resumed.

“The [Chinese] government is likely to face deteriorating fundamentals throughout the rest of the year, which will result in significant currency volatility,” Cheung added. “As a result, it is preparing to reduce the impact on Chinese individuals and their investment goods.

“Significant investor losses might become a cause of societal instability.”

Huaxia Bank was fined 98.3 million yuan (US$15.2 million) in May for failing to comply with disclosure requirements for its wealth-management products and providing inadequate warnings to its clients about the possible hazards of investment products. It joined a group of institutions that the China Banking and Insurance Regulatory Commission accused of violating a slew of laws and regulations. The commission also promised to increase pressure to ensure financial stability at the time.

Huaxia is the latest Chinese commercial lender to halt its personal foreign exchange trading operations, citing increased geopolitical tensions and currency volatility as reasons.

According to the China Securities Journal, which is published by Xinhua, more than 20 banks, including the Industrial and Commercial Bank of China, Postal Savings Bank of China, and China Merchants Bank, have made various adjustments to their personal foreign exchange and precious-metal trading businesses since the beginning of this year.

Account openings are being halted, trading criteria are being raised, risk tolerance thresholds are being raised, position amounts are being limited, and bulk agreements are being terminated.

Due to rising worldwide political and economic concerns, staff at China Merchants Bank in Beijing's Xicheng district claimed it has not been establishing new foreign exchange accounts for new customers or selling new products since late July, according to China Securities Journal.

In the previous three months, the yuan's value has remained stable versus the US dollar, trading in a narrow range between 6.45 and 6.50.

Subscribe Our Newsletter

Bears Rule Emerging Markets as Central Banks Battle Omicron

Bears Rule Emerging Markets as Central Banks Battle Omicron

If emerging market central banks were already struggling to strengthen their currencies as the Federal Reserve reduced monetary easing, their mission is now much more difficult.

Banks and Finance
Gopher Prepares for Final Negotiations with Playtech Regarding Finalto

Gopher Prepares for Final Negotiations with Playtech Regarding Finalto

The investment firm and Playtech stakeholder went on to say that it will now collaborate with the Playtech board on its own proposal.

Companies
Liquidity Provider

5 Tips for FinTech Startups
Financial industry is not known for fostering the growth of young startups. The risk of failure and the strong competition, on the other hand, should not dissuade you from starting your own FinTech company.

discover
How to Integrate Crypto Payment Gateway to Your Business?

Oliver

Oliver

How to Integrate Crypto Payment Gateway to Your Business?

Cryptocurrencies are becoming more and more popular, and as a result, there are more and more exchanges, businesses, and other organizations that work with crypto assets.

Crypto Payments

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries b2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Oliver

    How to Integrate Crypto Payment Gateway to Your Business?

    https://liquidity-provider.com/app/uploads/2022/07/how-to-integrate-crypto-payment-gateway-to-your-business-300x203.png

    Oliver

    How to Accept Crypto Payments as a Business

    https://liquidity-provider.com/app/uploads/2022/06/oblozhka-300x203.png

    Oliver

    What is a Crypto Payment Gateway?

    https://liquidity-provider.com/app/uploads/2022/06/shapka1-1-300x203.png

    Liquidity Provider

    Why Do Brokers Need PAMM Accounts?

    https://liquidity-provider.com/app/uploads/2022/05/why-do-brokers-need-pamm-accounts-300x203.png

    Regi Publico

    The Importance of Liquidity in Financial Planning

    https://liquidity-provider.com/app/uploads/2022/04/untitled-design-2-300x203.png

    Liquidity Provider

    What Are the Advantages of Paying with Bitcoin?

    https://liquidity-provider.com/app/uploads/2022/04/dizajn-bez-nazvaniya-3-1-300x203.png

    Liquidity Provider

    How to Promote PAMM/MAM & Copy Trading Service as a Broker

    https://liquidity-provider.com/app/uploads/2022/04/untitled-design-300x203.png

    Liquidity Provider

    How Do Crypto Payments Work?

    https://liquidity-provider.com/app/uploads/2022/03/untitled-design-10-300x203.png

    Liquidity Provider

    Top 6 Forex License Providers

    https://liquidity-provider.com/app/uploads/2022/03/frame-59318-300x203.png

    Liquidity Provider

    How to Get a FOREX License

    https://liquidity-provider.com/app/uploads/2022/03/untitled-design-1-300x203.png

    Liquidity Provider

    Top 5 Forex CRM Solutions for 2022

    https://liquidity-provider.com/app/uploads/2022/02/untitled-design-3-300x203.png

    Liquidity Provider

    5 FinTech Trends for 2022

    https://liquidity-provider.com/app/uploads/2022/02/untitled-design-2-300x203.png

    Liquidity Provider

    5 Tips for FinTech Startups

    https://liquidity-provider.com/app/uploads/2022/02/untitled-design-1-300x203.png

    Liquidity Provider

    What is NFT?

    https://liquidity-provider.com/app/uploads/2022/02/untitled-design-300x203.png

    Liquidity Provider

    What is Initial DEX Offering (IDO)?

    https://liquidity-provider.com/app/uploads/2022/01/untitled-design-1-1-300x203.png

    Liquidity Provider

    How Liquidity Provider Tokens Work

    https://liquidity-provider.com/app/uploads/2022/01/frame-59320-2-300x203.png

    Liquidity Provider

    How Does the Cryptocurrency Exchange Business Work?

    https://liquidity-provider.com/app/uploads/2021/12/frame-59315-300x203.png

    Liquidity Provider

    How Does The Forex Brokerage Business Work

    https://liquidity-provider.com/app/uploads/2021/12/frame-59303-3-300x203.png

    Liquidity Provider

    Top 10 White Label Exchange Solutions in 2022

    https://liquidity-provider.com/app/uploads/2021/12/frame-611012-300x203.png

    Liquidity Provider

    What is Liquidity Mining?

    https://liquidity-provider.com/app/uploads/2021/12/untitled-design-4-300x203.png

    Liquidity Provider

    What is Yield Farming?

    https://liquidity-provider.com/app/uploads/2021/12/untitled-design-300x203.png

    Liquidity Provider

    What is the Difference Between Centralized and Decentralized Exchange?

    https://liquidity-provider.com/app/uploads/2021/11/untitled-design-17-300x203.png

    Liquidity Provider

    What You Should Know About Energy Liquidity?

    https://liquidity-provider.com/app/uploads/2021/11/frame-59309-4-300x203.png

    Liquidity Provider

    What is Prime of Prime Liquidity?

    https://liquidity-provider.com/app/uploads/2021/11/frame-59319-3-300x203.png
    • News
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
    • Articles
      • Forex CRM
      • Crypto Payments
      • Copy Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
    [email protected]

    © 2022 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy