Surging metal prices linked to jump in hedge-fund transactions
Cash pours into materials as alternative to stocks, property
They’re chasing better returns in commodities as stocks and real estate fade, often using algorithms and trading late into the night, when markets in London and New York are most active.
China may have more than 5,000 hedge funds active in commodities. At least 10 manage assets of more than 10 billion yuan ($1.4 billion).
About a third of activity on Chinese exchanges is executed by automated commands, which generates more volume and greater momentum on global markets
The stock market is neither dead nor alive. Investment in real estate also got curbed. So all the money is rushing into commodities.”
Source: Bloomberg
https://www.bloomberg.com/news/articles ... ty-traders