China announces ‘zero tolerance’ crackdown on commodity market speculators
Repost from 5-24-2021
“[China’s National Development and Reform Commission] vowed that regulatory authorities will track commodity prices and beef up supervision of the related futures and the spot market (a public financial market where commodities are traded for immediate delivery). It promised ‘zero tolerance’ for illegal activities, such as ‘reaching agreements to implement monopoly, spreading false information, driving up prices’ and hoarding.”
USAGOLD note: One is required to ask how much of the run-up in commodity prices has to do with speculators operating within China’s borders? Further, how much influence is the Commission’s dictate going to have beyond China’s borders – in countries where the raw materials are produced? And those two questions are just for starters……Oanda’s Jeffrey Halley is quoted in the article as saying that there is a limit to what China can achieve on this score in the medium to the long run.