It is the real driving force behind the surge in commodity prices

Soaring pushing hands behind the investors

fenghuangcaijing· 2016-05-01 19:25:21

first, the lack of regulatory < at present, China's regulation of financial products is still not perfect, coupled with financial products not included in the bank's balance sheet, which give financial products provides potential bad debts space, market is not conducive to timely discover and eliminate non-performing financial products. < second, high risk < in order to attract investors, financial products will generally ensure high-yield, high interest rates), in order to do this, investors' savings is used in the highest risk loan program, for example, some of the excess capacity of Chinese enterprises issued by the high risk bonds. In addition, some financial products did not respond to the potential risk of the risk of preparing margin, the more play the risk factor.

third, high leverage

financial products controlled by the bank, but not on the bank's balance sheet, by selling financial products, banks can get money from the hands of individual investors. In general, the special interest tool investment leverage will reach 5:1, in some cases even to 10:1, so as to provide investors with 5%-15% returns.

such a lever will not have any problems at the beginning, a long time will be exposed. Bank financial products began to invest in high-risk bonds, after turning to the real estate market, and then after the stock market, without exception, the final collapse of financial products, the rate of return will fall.

now, these highly leveraged financial products eyeing the commodity futures market. What evidence does


1 month 16, Shanghai rebar futures contract average transaction amount is 180 million U.S. dollars / day, 3 months later, the trading volume soared 285 times to 514 billion U.S. dollars / day! Iron ore, coking coal, polypropylene futures contract rose by 114 times, 1056 times and 150 times! This size is too large, so Johnson believe that this must be behind the promotion of bank financial products.

Johnson said: the commodity market will experience the collapse of A shares suffered last year, which is inevitable. "(Oscar)

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