Chinese securities firms are halting new stock-linked cross-border Total Return Swaps (TRS) as per regulatory guidance. While existing positions can mature or be closed out, the business is expected to gradually wind down. This move follows earlier restrictions on net new business for TRS since the start of 2024, with firms awaiting specific details on the new suspension. The stock-linked cross-border TRS was a significant revenue generator for brokerages, typically charging 1%-2% in channel fees. AI
RANK_REASON Policy change impacting financial instruments. [lever_c_demoted from significant: ic=1 ai=0.1]
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