Chinese hedge funds were likely redeploying a short-selling strategy previously used on coal and iron ore to target copper, which fell to 5 1/2 -year lows near US$5,350 a ton this week and faced the biggest weekly loss in more than three years at 6.4%, Reuters reported, citing industry analysts and unnamed sources. Chinese funds such as Shanghai Chaos Investment and Zhejiang Dunhe Investment are said by traders to be behind at least three big drops in copper over the last year, including one in March when the metal fell more than 8% in three days.
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