Beijing bans trading after getting tarnished by copper
Geoff Dyer, Shanghai
January 26, 2006
THE Chinese government agency at the centre of an apparent copper trading scandal last year will ban its units from trading in overseas markets and in a range of financial instruments.
The State Reserves Bureau, which stockpiles commodities on behalf of the Government, said on Tuesday that its divisions could not use their funds to invest in "futures, stocks, corporate bonds, all types of investment funds or other financial derivatives".
Its traders are to be restricted to buying basic commodities such as oil, copper and soybeans, and are not allowed to buy derivatives.
The statement did not mention copper or admit to any specific problems but said the policies were designed "to prevent a recurrence of the problem of large losses from random investments". China stirred up the copper market at the end of last year when it was reported a government trader took a short position of 100,000-200,000 tonnes in copper futures on the London Metals Exchange. Analysts said losses could exceed $US100 million ($130 million).
Liu Qibing, the trader who worked for a branch of the SRB called the State Regulation Centre for Supplies Reserve, disappeared and has not been seen at his Beijing apartment since.
The price of copper, which had already risen strongly over the previous two years, continued to break records as investors bet the Chinese Government would buy copper to meet positions.
The SRB initially denied any connection to Mr Liu. Later officials said he had been acting in a personal capacity and no longer worked for the Government. The SRB has never commented on the the outstanding contracts or potential losses. "This statement is probably as close as an admission of guilt as we will get," said a futures broker in Shanghai.
Although most contracts were supposed to expire at the end of December, some traders say the Chinese Government rolled most obligations, at considerable expense, over the next two years.
The new trading rules at the SRB, which also included strict controls on how the agency spends funds, come during mounting debate in China about centralising the country's purchase of commodities. China is the biggest buyer of copper, steel, alumina and iron ore, but has little influence on prices.
Não sabia o que significava essa palavra e resolvi consultar um dicionário que tenho instalado no pc... ;D
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tarnished
adj.
baço, embaciado, sem brilho;
empanado, deslustrado, manchado;
a tarnished reputation
uma reputação manchada;
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Um abraço Paciente!
Tarnished neste caso tem a tradução perfeita numa fantástica palavra só possível na Língua de Camões: escaldados
Beijing elimina trading depois de ficar escaldada com o cobre