CHINA’S banking and insurance regulator has asked commercial banks to halt new sales of a wide range of wealth management products that might lead to unlimited losses for investors, sources said.

At the weekend, the China Banking and Insurance Regulatory Commission (CBIRC) gave verbal instructions to banks to halt new sales of products that could trigger open-ended losses for investors, and requested reports on the outstanding size of related products, according to two direct sources who are familiar with the matter.

The CBIRC’s move came nearly a week after heavy losses were recorded in a crude oil futures trading product sold by the country’s fourth-largest lender, Bank of China.

The CBIRC didn’t immediately respond to request for comment after working hours Monday. Bank of China had no comment.

Last week, Bank of China said it had settled trades for its crude oil futures trading product at a historic negative value of minus US$37.63 per barrel, leaving mainly retail investors crying foul as they said the bank should have done more to protect their interests.

Some banks, including Bank of China, have been asked to conduct their own investigations into possible loopholes in their risk management since last week, a third source said. (SD-Agencies)