Leading Chinese hedge funds cut their short-copper positions

The surge in global copper prices is forcing those Chinese hedge funds that had shorted the red metal to reconsider their strategy, market participants said on Thursday May 7.

The rethink is also being driven by the fall in the Chinese stock market, which, on Tuesday May 5, witnessed its largest single-day drop since December 9 last year, because the copper-shorting play has seen the same companies go long on the stock market index. Copper prices have been rising much faster than market expectations and rose to a year-high of $6,481 per tonne on the London Metal Exchange on Tuesday May 5. Prices for the red metal have been climbing since the night of April 30, Shanghai time, just as Chinese market participants started their Labour...

Published

May 07, 2015

12:08 GMT

Shanghai