Hong Kong Forex retail forex broker KVB Kunlun Financial Group Ltd (HKG:8077) has announced that it has received a notice from the Tianjin Precious Metals Exchange Limited in China (TPME) to the effect that the TPME will adjust its precious metals spot trading business with a view to reduce the trading risks.
As a result, the TPME will suspend the opening of new trading positions for all spot commodities traded on TPME with effect from next Monday, June 12, 2017.
The closing of existing trading positions will not be affected.
KVB stated that it was not informed when or if the TPME suspension will be lifted.
As a result of the suspension, other than the closing of existing positions, KVB Kunlun will no longer be able to generate revenue from the spot trading business in precious metals on the TPME after the suspension date of June 12.
The company did note, however, that the expected impact from the suspension will not be significant to the company’s overall business and current financial position.
KVB also stated that it intends to continue to explore other opportunities in respect of commodities trading in the PRC.