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Thread: China hunts fugitive commodities trader

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[quote=MARRIE,307735]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."

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