(Yicai Global) April 28 -- Industrial and Commercial Bank of China, the country’s biggest lender, has stopped opening new positions in some commodity futures-linked products after crude oil prices cratered in the US.

The temporary suspension, which affects retail products connected with crude oil, natural gas, copper, and soybean futures, should protect investors’ interests as subzero prices of US oil futures and big swings in commodity markets could cause losses, ICBC said in a statement sent to customers yesterday.

Rival Bank of China's oil-linked products recently had huge losses when the May futures contract for West Texas Intermediate, the benchmark for US oil, touched minus USD37.63 for the first time ever on April 21, following a global rout caused by storage capacity shortages amid weak demand brought forth by the Covid-19 pandemic.

Bank of China, China Construction Bank, and Bank of Communications have also said they will hold off opening new positions in products connected with oil futures.

ICBC was the first in China's mainland to provide investors with exposure to global oil markets by launching futures-related products in 2013. Many lenders followed suit.

Bank of China has not demanded payment yet from investors who lost money and is waiting for its head office to determine what to do, China Securities Journal reported on April 26, citing a person familiar with the matter.

Editor: Emmi Laine