Recently, I've heard about many incidents that caused huge losses due to hasty telephone calls. According to a market source, many Hong Kong billionaires agreed to place orders over the phone because they had listened to the accumulated foreign exchange investment advice of option contracts Bank recommended by their investment bank consultants before, did not read the contract risks in detail, and did not ask financial consultants and legal consultants to check the contract details, resulting in huge losses.
A customer can place such a high-risk order with just one phone call, so does the counterparty bank that signed these contracts with Zhang Lixian have any professional ethics problems? Has the counterparty bank fully demonstrated the possible risks of the contract to Zhang Lixian due diligence?
The above-mentioned person said that Zhang Lixian didn't realize the risk at that time. It took a month from the signing of the contract to the completion of the contract confirmation. On the surface, the contract is HK$ 5 million or HK$ 6,543,800+million. "But the terrible thing is that the biggest loss will not stop at 5 million, but 5 million times 24 months. If there is high leverage, say 5 times, multiply it by high. This kind of contract, also known as accumulator, has an upper profit limit but no lower loss limit, and is called "devil trade" by the market.
On the evening of February 2, 65438, CITIC Pacific issued a circular letter to shareholders, revealing for the first time the counterparties who signed leveraged foreign exchange contracts with them and their transaction details.
According to the circular, in the past two years, CITIC Pacific has signed 24 foreign exchange contracts with 65,438+03 banks, including Citibank Hong Kong Branch, Standard Chartered Bank, ABN Amro International, NATIXIS, Credit Suisse International, Bank of America, Barclays Bank, BNP Paribas Hong Kong Branch, Morgan Stanley Capital Services, Hongkong and Shanghai Banking Corporation, China Development Bank, Credit Suisse Oriental and Deutsche Bank.
According to people familiar with the matter, CDB was originally unwilling to conduct counterparty transactions with CITIC Pacific, and Zhang Lixian took the initiative to ask CDB to trade with it. "It is understood that CDB itself does not have this business. In fact, Zhang Lixian went to CDB, and he hoped that CDB would give assistance. "