A major Chinese metals industry body has called for authorities to investigate "malicious" short selling of metals markets on the Shanghai Futures Exchange, industry sources said, the latest sign of panic about sinking prices in the world's top producer.
The initiative was led by state-controlled China Non-ferrous Metals Industry Association and supported by a few large state-owned domestic metals producers, four sources said, coming after metals prices in Shanghai fell to levels last seen in the 2008/09 global financial crisis.
The price drop coincided with a steep climb in the last week in open positions and volumes for several metals traded on the exchange, prompting some producers to blame short selling for the price pressure.
"For malicious short selling, (we) would have actions," said one of sources, who is an official at the association.
The official did not give details, including whether or not the industry body has complained to the regulator China Securities and Futures Commission (CSRC).
Another source, who is an executive at a private investment firm that produces aluminium and trades aluminium, copper and zinc, said the industry body had proposed an investigation to CSRC.
The CSRC did not respond to a request for comment. The industry body did not comment either.
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