China Moves Against Fuel Price Speculators, Ups Support for Coal Production
Oct. 5, 2021 (EIRNS)—Faced with electricity blackouts, a shortage of coal, and a nearly 75% jump in the price of coal futures over September, the Chinese government took action. China’s Banking and Insurance Regulatory Commission issued a circular this morning instructing banks and insurance institutions to help provide financing for energy and industrial producers—and reminding them that commodity speculation is illegal in China—so that Chinese citizens are assured of adequate electricity through the winter.
While Western governments sit on their hands watching Wall Street and City of London financiers profiteer off “green”-created scarcity, Chinese regulators moved to “strengthen financial support for coal and electricity production and maintain order in the commodity market,” the official news agency Xinhua reports. Banks were urged “to satisfy reasonable financing needs of power, coal, steel and non-ferrous metal producers to ensure supplies and stabilize prices ... and actively support major coal-producing areas and key enterprises to increase the supply of thermal coal.”
Furthermore, the use of bank and insurance funds for speculating on coal, steel, non-ferrous metals, and other bulk commodities is prohibited, as is “withdrawing or cutting off loans from power and coal producers and relevant projects that qualify for financial support.” Banks are instructed to also take measures “to prevent illegal inflows of bank and insurance funds into stock, bond and futures markets, and behaviors inducing consumers to borrow blindly and spend excessively.”
This is no “pretty please” request. Those believed to be involved in “illegal activities such as speculation, hoarding and price gouging” will be investigated and punished, the regulatory agency advised.