China hunts fugitive commodities trader

China hunts fugitive commodities trader
Jul 28, 2008 21:18	#11
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	The first public signs of trouble emerged in mid-November, as traders in London told local financial reporters that a Chinese counterpart had built up a large short position in copper, and had then disappeared: Liu had not been heard from in several weeks. The rumors pushed up the price of copper on the London futures board, as traders bet that eventually China would start buying to make good on Liu's contracts. At first, China's State Reserve Board denied that it had a trader named Liu Qibing. Later, it acknowledged Liu's existence and the bet he had made against copper, but it insisted that those trades were his individual concern. As the pressure mounted last week, with trading sessions pushing copper to record prices, China branded Liu a rogue trader, raising the possibility that Beijing would not make good on the contracts, but would let traders in London swallow the losses. "Initial investigation found that Mr. Liu alone should be blamed for the loss," said a Nov. 17 report in the China Daily. The same day, the official New China News Agency quoted an unidentified State Reserve Board official: "We haven't seen this person for a long time."

Jul 28, 2008 21:18

#11

MARRIE
Points:
Join Date: Jan 7, 2008
Status: Offline

The first public signs of trouble emerged in mid-November, as traders in London told local financial reporters that a Chinese counterpart had built up a large short position in copper, and had then disappeared: Liu had not been heard from in several weeks. The rumors pushed up the price of copper on the London futures board, as traders bet that eventually China would start buying to make good on Liu's contracts.

At first, China's State Reserve Board denied that it had a trader named Liu Qibing. Later, it acknowledged Liu's existence and the bet he had made against copper, but it insisted that those trades were his individual concern.

As the pressure mounted last week, with trading sessions pushing copper to record prices, China branded Liu a rogue trader, raising the possibility that Beijing would not make good on the contracts, but would let traders in London swallow the losses.

"Initial investigation found that Mr. Liu alone should be blamed for the loss," said a Nov. 17 report in the China Daily. The same day, the official New China News Agency quoted an unidentified State Reserve Board official: "We haven't seen this person for a long time."

Jul 28, 2008 21:19

#12

MARRIE
Points:
Join Date: Jan 7, 2008
Status: Offline

Four days later, the government signaled that it might take responsibility. A report from the state agency said China had begun stockpiling copper in Shanghai in case it had to transfer large volumes to the London market to cover Liu's bad trades.

The same day, the state-supervised Economic Observer newspaper reported that Liu had been held in custody for unspecified "irregularities" since the middle of October. Much like the details of his rise and fall, his whereabouts were unknown.

Special correspondent Eva Woo contributed to this report from Shanghai.

Jul 28, 2008 22:51

#13

GARYKINKADE
Points:
Join Date: Jan 8, 2008
Status: Offline

Well....it appears that greed has invaded a state agency.....large scale too.
It's my understanding that the PRC does not tolerate this kind of activity too kindly and a penalty called "hanging" may be enforced depending upon the severity of the crime.
How many people or agencies would be involved in this particular scheme?
Most stories like this follow the pattern of the "boggie man" or "fall guy" having an offshore account and going "incognito" never to be found again( whether for real or on purpose).

Aug 3, 2008 21:36	#14
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	But Gary, Transferring money in China thru wire asks for photo ID. So how this guy can manage to settle it in his offshore account. We are learning the tricks in order to stop the crime. Maybe financial security mechanism could help us???

Aug 4, 2008 09:48

#15

GARYKINKADE
Points:
Join Date: Jan 8, 2008
Status: Offline

"Learning the tricks in order to stop the crime"
Studying the past history of BCCI (Bank of Commerce and Credit International) would be a good place to start. And I'm sure that has already been done by the PRC.
This bank was a "nesting place" for accounts of the CIA, supposed terrorist groups, Saudi Arabian interests, money laundering, illegal drug cartels, etc, etc.
And of course the full disclosure of this was never revealed to the British press, more to the American press thru a Congressional investigation. But then again, the full story will never revealed.
So, to me, this indicates "somewhat of" a local or global farce when it comes to the supposed war on terrorism, illegal drugs or corporate and government corruption.
Sorry, that I got on a "tangent" to the subject, but it appears to be all interconnected.
It sort of reminds me of the "Opium Wars" and wish I could gain more unbiased information on that subject.

Aug 5, 2008 19:12	#16
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	What if he manages to land in USA with cash, secretely buy real property under the name of his relatives or friends who are legal residents in US and then apply for political refugee.

Aug 6, 2008 22:30	#17
COOLSPRINGS Points: Join Date: May 19, 2008 Status: Offline	This is the usual way that corrupted high rank officers and privileged state business men wash the dirty wealth. And loose credit policy to the privileged is pilfer in disguised form. hence portion of state wealth goes to las vegas, macau, private lux real property, or even tear one or tear two overseas stock market...

Page 2 of 2 < Previous Next > Page:

Post a Reply to: China hunts fugitive commodities trader