“Metals Traders On Red Alert” – Chinese Commodity Bubble 2.0 Just Imploded

But now, Chinese housing is at record highs, Chinese stocks are falling, Chinese bonds are falling, and Chinese commodities are tumbling… the only thing with momentum for the hot money to chase in the currency… and we suspect (by recent liquidity withdrawals) that The PBOC has had enough of that.

“The massive and unprecedented surge in Chinese trading volume in base metals over the past month — but especially since the election — has put LME metals traders on red alert,” Tai Wong, director of commodity products trading at BMO Capital Markets in New York.

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