(Yicai Global) Aug. 28 -- China Securities Regulatory Commission (CSRC) has called misleading recent promotional claims that investments in lucrative foreign futures markets can be extremely lucrative, and advises investors against engaging with these institutions in order to avoid fraud and protect their interests, Chinese newspaper Securities Daily said on Aug. 28.
Recently, some institutions have been heavily promoting their agency services providing access for Chinese investors to engage in deals for futures including crude oil, gold, stock indices, and forex markets in Hong Kong, New York and London.
Some agents even offer services such as expert guidance, one-to-one teaching and futures financing. Investors are often required to provide identification credentials and pay charges to access related software to facilitate foreign futures trades.
Chinese units or individuals are not permitted to deal in the futures sector, and domestic units or individuals should not work on foreign futures deals illegally, the country's regulations state.
The CSRC will not protect the rights and interests of any domestic investors in any arising from foreign futures deals made through such trading software or mobile apps, said an industry insider interpreting the wording of the regulation mentioned above.