03.11.2016 - Shadowy margin lending fuels China commodity futures boom
Grey market loans feed speculation in ‘ferrous complex’ of steel, coal and iron ore. Chinese hedge funds are providing margin finance for leveraged bets on the country’s booming commodity futures market, in an echo of the practices that led to last year's stock market boom and bust. Futures prices for the so-called ferrous complex of steel, iron ore, coking coal and coke have risen sharply this year as Chinese fiscal and monetary stimulus has produced a revival of construction activity in real estate and infrastructure...........................................Full Article: Source
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