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16 Jan 2015
Chinese hedge funds behind massive copper sell-off this week
FXStreet (Bali) - While it may sound a distant event, given the shocking events seen in the last 24h following the removal of the EURCHF floor, on Wednesday, Copper saw its worst losing day for over 3 years, with an article in the FT arguing that Chinese hedge funds were the main suspects orchestrating a very aggressive sell-off.
From the FT
"Market participants say aggressive selling by Chinese hedge funds that are virtually unknown in the west played a powerful part in pushing the metal down more than 7 per cent to its lowest level since 2009."
"Similar to a sudden drop in March 2014, the fall signals the growing importance of Chinese funds in commodities. Groups said to be active in metals markets include Zhejiang Dunhe Investment and Shanghai Chaos Investment. They declined to comment for this article."
"Dealing during illiquid hours, their aggressive tactics can have speedy ramifications given the increasing presence of high-frequency traders and black-box funds, that sell or buy based on preset instructions and feed off their moves."
"Shanghai Chaos Investment Co is one of a coterie of funds exercising a growing impact on global metals markets, where the price of everything from aluminium drinks cans to lead batteries is set."
From the FT
"Market participants say aggressive selling by Chinese hedge funds that are virtually unknown in the west played a powerful part in pushing the metal down more than 7 per cent to its lowest level since 2009."
"Similar to a sudden drop in March 2014, the fall signals the growing importance of Chinese funds in commodities. Groups said to be active in metals markets include Zhejiang Dunhe Investment and Shanghai Chaos Investment. They declined to comment for this article."
"Dealing during illiquid hours, their aggressive tactics can have speedy ramifications given the increasing presence of high-frequency traders and black-box funds, that sell or buy based on preset instructions and feed off their moves."
"Shanghai Chaos Investment Co is one of a coterie of funds exercising a growing impact on global metals markets, where the price of everything from aluminium drinks cans to lead batteries is set."