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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: redfish who wrote (51086)	1/23/2006 11:04:35 PM
From: shades	Respond to of 110194

DJ China Reserves Bureau:To Avoid More Huge Invest Losses-2- Liu Qibing, a copper trader for the State Reserves Bureau, is estimated to have lost $200 million on those trades, according to London Metal Exchange participants. Liu sold 130,000 metric tons of copper at $3,300 a ton with the intention of buying it back at a lower price and booking a profit, according to a report in the official China Daily mid-November. London market participants had estimated Liu to have taken short positions of between 100,000 tons to 200,000 tons of copper, most of it due for delivery in late December. But with LME copper prices around $4,000 a ton and rising, Liu inexplicably ended contact with other dealers in London and China, people who worked with the trader said. As the potential losses rose, Liu was removed from his job, people familiar with the market said. The new rules appear to be aimed at closing a loophole that had allowed government bureaus, such as units under the State Reserves Bureau, to trade in futures and other financial instruments. There are 31 Chinese companies permitted to trade derivatives, but the State Reserves Bureau and the State Regulation Center of Supplies Reserve, a government agency like the State Reserves Bureau that manages China's resources, weren't explicitly covered in the previous regulations. RE the street - HAHA