All the signs are that commodity demand as part of Chinese financing deals is set to fade. The profitability of the schemes is being eroded and the authorities are stepping up efforts to curb some forms of shadow banking. This should improve transparency in the market, but a disorderly unwinding of the deals could lead to sharply lower prices as stocks are offloaded on to the market.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.