More of that liquidity crisis coming into play
One Of China's Largest Banks Fails To Pay Margin Call After Yesterday's Monster Nickel Squeeze.
A unit of China Construction Bank Corp - one of China's "Big Four" banks - was given additional time by the London Metal Exchange to pay hundreds of millions of dollars of margin calls it missed Monday amid an unprecedented spike in nickel prices. The reprieve from the LME - which just last week sent out thousands of erroneous margin calls on metals contracts - means that the unit, called CCBI Global Markets, is not formally in default.
But while a big Chinese bank may have had immunity, others may not be so lucky: Bloomberg previously reported that Chinese entrepreneur Xiang Guangda - known as “Big Shot” - had a large short position on the LME through his company, Tsingshan Holding Group, the world’s largest nickel and stainless steel producer. It's unclear whether that particular trader received a margin call and if he paid it.
And so, as we wait for more massively short squeezed names to emerge, we can't help but wonder if this is precisely the start of the "liquidity crisis"
A unit of China Construction Bank Corp - one of China's "Big Four" banks - was given additional time by the London Metal Exchange to pay hundreds of millions of dollars of margin calls it missed Monday amid an unprecedented spike in nickel prices. The reprieve from the LME - which just last week sent out thousands of erroneous margin calls on metals contracts - means that the unit, called CCBI Global Markets, is not formally in default.
But while a big Chinese bank may have had immunity, others may not be so lucky: Bloomberg previously reported that Chinese entrepreneur Xiang Guangda - known as “Big Shot” - had a large short position on the LME through his company, Tsingshan Holding Group, the world’s largest nickel and stainless steel producer. It's unclear whether that particular trader received a margin call and if he paid it.
And so, as we wait for more massively short squeezed names to emerge, we can't help but wonder if this is precisely the start of the "liquidity crisis"
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