After Moody’s late-Friday downgrade of the U.S. government’s top credit rating, investors turned to safe-haven trades, with gold futures seeing increased demand Sunday evening through early Monday. However, attention has now shifted to a Chinese trader named Bian Ximing, who has transitioned from highly profitable precious metals trades to a significant long position in copper.
According to a report by Bloomberg, Bian Ximing, a Chinese billionaire who made $1.5 billion from gold futures trades, has now become China’s biggest copper bull. Shanghai Futures Exchange data reveals that Ximing has accumulated the largest net long position in copper contracts, with around 90,000 tons in copper futures over the past ten months.
“It’s a quite unique copper position that is worth following,” said Li Yiyao of Cofco Futures Co.’s Shanghai North Bund division. Yiyao noted that Ximing’s bullish sentiment on copper is based on long-term fundamentals, setting his strategy apart from typical short-term market approaches.
Ximing’s move towards copper began before the November U.S. presidential elections, anticipating a Trump win and Chinese stimulus to benefit industrial metals. This bet has already yielded $200 million in profits, with Jia Zheng of Shanghai Soochow Jiuying Investment Management Co. stating that while Ximing’s position isn’t large enough to impact the market significantly, it provides valuable insights into his strategy.
Trade tensions between the U.S. and China have slightly eased, with a 90-day cooling-off period in effect as negotiations proceed. Meanwhile, industry experts like Kostas Bintas and Nick Snowdon have expressed optimism about copper prices, citing global demand surpassing supply and favorable price forecasts for the metal.
Goldman analyst Eoin Dinsmore predicts continued support for copper prices in the coming months due to decreased trade tensions and strong Chinese demand. The ‘Powering Up America’ and ‘Next AI Trade’ themes have been highlighted as key drivers behind the copper trade.
Overall, the market remains attentive to developments in Ximing’s copper trades as global economic dynamics continue to evolve.