In China, Shanghai Chaos Investment’s founder and owner Weidong Ge is associated with cotton and soybeans, while Zhejiang Dunhe’s Qingjun Ye began his career trading copper in the early 1990s.
In the V-shaped crash and boom of 2008-2010, the assets under management of some Chinese hedge funds grew rapidly.
In addition to the capital of their founders, they raised investment privately, through friends and family, but also through government-regulated sunshine channels: trust products, securities companies’ asset management vehicles and wealth management vehicles.
This increase in size, and international outlook, has increased their influence in metal markets over recent years.
Commodity futures traders...
The funds have strong ties to the physical markets in China, either by virtue of their long experience trading in the country’s futures markets, or as a result of some of their investment coming from participants in the physical business in the country.
Some of their founders might also...