China Bears Seen Punishing Copper as Short-Selling Stocks Curbed
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Chinese investors banned from shorting equities may be selling copper instead, exacerbating the metal’s collapse to the lowest in six years.
They’re seeking to hedge exposure to Chinese shares after the government stepped in to stem a stock-market collapse that wiped out $4 trillion in value, according to brokers including Guotai & Junan Futures Co. and Haitong Futures Co. Copper is being sold as a proxy for China’s broader economy, said Ivan Szpakowski, a commodity strategist at Citigroup Inc.