Wake-Up Call For Textile Practitioners

The opening of the 2020 showed a crazy attribute. The outbreak of the new coronavirus pneumonia was rampant in the first quarter. In March, the world people witnessed the four fuses in ten days. In April, the OPEC+ reduction agreement will be able to generate power in the future, and the oil market will be on the steep roller coaster.

With US crude oil prices falling below $15 a barrel, many investors think that the best time to buy crude oil is already coming. But contrary to expectations, there is nowhere to go for the supply of crude oil, and the cost of storage is already higher than the cost of crude oil.

The Bank of China crude oil is a trading product issued by the Bank of China for domestic and foreign crude oil futures contracts issued to individual customers, including crude oil from the United States and Britain. According to the exposure of the whole story, in April 20th, the US West Texas crude oil futures settled in May at -37.63 dollars per barrel. Then the Bank of China made an active contact with CME on 21 th, confirming the validity of the settlement price and the relevant settlement arrangements, suspending the WTI crude oil contract on the day of trading. All investors' accounts were frozen, and the problem of insufficient global oil storage space continued to ferment. The head made the crash the day before.

On the 22 day, the bank issued a further announcement confirming that the WTI crude oil futures contract May CME official settlement price of $-37.63 per barrel was the effective price. At the same time, since April 22nd, we suspend the opening of our crude oil treasure. This announcement means that the clients not only lose their capital, but also pay back to the Bank of China, and even affect their credit. It is understood that a large household investment of 3 million 880 thousand, and finally lost 9 million 200 thousand. For a time, many investors called "unprepared", and others said they wanted "class action" and demanded "give a statement".

For the participants and buyers of financial products, the cost of this course is high and the cost is very painful. For us, the hidden dangers of crude oil treasure products and the absence of investors' protection consciousness are worth waking up in the whole industry. There is a sentence in Sun Tzu's art of war "Sun Tzu's attack chapter": "know one's own knowledge and know one's enemy and fight all battles". Judging from the feedback information from the Internet, some investors in the "crude oil treasure" of the Bank of China do not have relevant knowledge reserves, and then blindly follow suit. Then the exchange suddenly changed the rules. Neither knows nor knows how to lose. As practitioners of textiles, we can draw some lessons from it.

First, it is necessary to master the relevant professional knowledge.

Second, we need to maintain good communication with our customers so as to avoid losing opportunities.

Third, we need to have a comprehensive assessment of our regular customers, including repeated capabilities and willingness to take risks.

Fourth, the contract should be formal, one is the export contract, the other is the procurement contract, the procurement contract is requested to be drafted by the Chinese lawyer, and the export contract should try to find the lawyer in the country where the client is located to optimize the dispute. As for the facts, the departments concerned should investigate clearly, and the division of responsibilities should be clearly defined. Both administrative procedures and judicial procedures must "speak with evidence".

Fifth, in future investment, if we do not listen, follow suit or follow blindly, we should choose products that match our own ability as far as possible.

Sixth, do not put eggs in baskets, purchase raw materials, try to select a small number of frequency, minimize risk.

Seventh, we must pay attention to polyester products such as crude oil processing. When the overseas epidemic will be eased, all the bottom will be based on this premise, otherwise all prices will be bottomless.