BEIJING, Sept 20 A big market-making state bank
in China's onshore foreign exchange market has stopped foreign
exchange forwards and swaps trading with several European banks
due to the unfolding debt crisis in Europe, two sources told
Reuters on Tuesday.
The European banks include French lenders Societe Generale
, Credit Agricole and BNP Paribas .
"Apart from spot trading, all swaps and forwards trading
(with the European banks) have been stopped," one source who is
familiar with the matter told Reuters.
The Chinese state bank, a primary player in China's onshore
foreign exchange market, has also stopped trading with UBS AG
in the wake of that bank's $2.3 billion loss from a
rogue trading scandal.
(Reporting by China news team; Editing by Ken Wills)