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JPMorgan Is the Biggest Counterparty for Nickel Tycoon’s Short Bets

  • JPMorgan is leading discussions between Xiang and banks
  • Tsingshan’s banks also include CCBI, Standard Chartered
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WATCH: JPMorgan is the largest counter party to the nickel trades of the Chinese tycoon caught in an unprecedented short squeeze. Annie Lee reports.Source: Bloomberg

JPMorgan Chase & Co. is the largest counterparty to the nickel trades of the Chinese tycoon caught in an unprecedented short squeeze, putting the bank at the center of one of the most dramatic moments in metals market history.

About 50,000 tons of Xiang Guangda’s total nickel short position of over 150,000 tons is held through an over-the-counter position with JPMorgan, according to people familiar with the matter. Based on that figure, the tycoon’s company, Tsingshan Holding Group Co., would have owed JPMorgan about $1 billion in margin on Monday. The nickel producer has been struggling to pay margin calls to its banks and brokers, Bloomberg reported this week.