Beijing: hedge funds behind copper woes

Liu Mingkang, head of the China Banking Regulatory Commission, blamed hedge funds for the scandal resulting in the current convulsion in the world copper market, reported the South China Morning Post. China stands to suffer massive losses on December 21 when it is committed to buy, or cover, dangerous short positions taken by one of its state agents in July and August. For the first time, a high official cited the Liu Qibing case in which the State Reserve Bureau trader was said to have taken illicit short positions equal to about 130,000 tonnes of copper at US$3,300 a tonne, expecting the price to drop. Instead, it went up, closing at US$4,374 Monday. Liu said hedge funds make "destructive movements [that] can cause market chaos."