Chinese Hedge Funds Shorting Industrial Metals Across the Board

Reuters: As Chinese funds return to copper, should we be worried?

Depends. Do you run with the bulls or the bears?
At the start of this year most analysts were still scratching their heads as to what was happening in China, the driver of global copper demand growth.

Chinese hedge funds, it seems, had already made up their mind that whatever was around the corner wasn't going to be good, and they voted with their wallets.

Should we be worried that they are evidently doing so again? Particularly since, this time around, it's not just copper that is being singled out for the bear treatment. Shanghai open interest has spiked in both zinc and, unusually, aluminum.
This is a thinly traded ETF, but I've held it for the past two or three years waiting for this. The only that surprises is how low the volume has remained despite the good returns. The 2008 peak was above $80.

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