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Thread: China hunts fugitive commodities trader

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[quote=MARRIE,307724]Small traders are allowed under regulations issued last year, but Huaxia might have been engaged in bigger, longer-term trading than its status allowed, the financial newspaper 21st Century Business Herald said.
The Ministry of Commerce, which oversees commodities trading, did not respond Monday to questions by phone and fax about Huaxia's legal status and trading.
The Chinese newspaper Legal Daily, citing unidentified sources, said 170 million yuan ($25 million) in investors' money was missing.
Guo founded Huaxia in 2001 and as the firm grew, it expanded to other regions of China, according to police.
According to investors, Huaxia customers used Web-based accounts to trade commodities, with the company charging a percentage on each deal. Chinese markets trade futures in wheat, soybeans, palm oil, sugar, cotton, corn, gold, copper and zinc.
Short-term traders sign contracts to take delivery of commodities and sell them minutes or hours later, trying to profit from price rises. Buyers can include small food processors or other traders who need to fulfill delivery commitments.
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