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Chinese Nickel Giant Secures Bank Lifelines After Epic Squeeze

  • Banks, company still in talks on additional collateral
  • Xiang tell bankers that he’s reviewing hedging strategy
Bloomberg business news
WATCH: The Chinese tycoon known as “Big Shot” in commodities circles is said to be facing billions of losses, after building this massive short position in nickel.Source: Bloomberg

The Chinese nickel company at the center of a historic short squeeze has secured a package of loans from local and international banks to help it meet a wave of margin calls, according to people familiar with the matter.

Tsingshan Holding Group Co., which faces billions of dollars in potential losses on short positions in nickel futures, won credit promises from banks including JPMorgan Chase & Co. and China Construction Bank Corp. in meetings that ran into the pre-dawn hours of Wednesday morning, the people said, asking not to be named since the matter is private. Some of the terms, such as how much extra collateral Tsingshan needs to pledge, are still under discussion, the people said.