Chinese bulk commodity futures are surging again, continuing the bullish price action seen late last week.
Here’s the halftime scorecard on Monday.
SHFE Rebar ¥3,174 , 1.96%
DCE Iron Ore ¥438.50 , 2.10%
DCE Coking Coal ¥1,004.00 , 3.13%
DCE Coke ¥1,601.50 , 4.50%
Some pretty hefty gains, building upon the move that began on Friday evening.
The latest bout of buying enthusiasm may be explained by reports over the weekend that Chinese regulators are looking at removing restrictions on banks, pension funds and insurance companies from trading in commodity futures.
Fang Xinghai, vice-chairman of the China Securities Regulatory Commission, said that he would support investment in commodity assets by China’s wealth management companies,” according to the Financial Times citing local media reports.
Fang also said that China “should maintain investment in commodities at a certain level to gain control over strategic resources”.
By control, it appears that many traders have taken that to mean “buy”, at least based off the price action seen today.