| China’s commodities rally has extended beyond its futures market into equities. But now the government is putting on the brakes—and investors could be hit hard.China’s commodity futures markets are looking like its stock markets a year ago, when hordes of investors bet huge sums, setting the stage for a painful crash.
Money started to pile into metals futures in March, after China’s rubber stamp National People’s Congress expanded the country’s fiscal deficit to pump up growth, and approved reforms to reduce overcapacity in the steel and coal industries. Trading momentum got a further boost after China’s real estate market showed green shoots in the form of home-price increases in lower-tier cities...............................................Full Article: Source
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