China state banks plan curbs on metals, forex trades if U.S. election fuels volatility

Two major state-owned Chinese banks warned on Monday that they could restrict trading of precious metals and foreign exchange products if this week’s U.S. presidential election fuels market volatility. Bank of China <601988.SS> <3988.HK>, the fourth largest lender by assets, said it might curb or suspend such trade, while Bank of Communications <601328.SS> said it was taking steps to potentially limit spreads and transactions during the election. “We expect volatility in the precious metals and foreign exchange market to increase significantly between Nov. 3 and Nov. 4,” Bank of China said in an online statement.

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