SHANGHAI, Jul. 9 (SMM) – The September-delivery lead contract on Shanghai Futures Exchange once rose by the daily limit to touch 12,825 yuan per tonne today, following a rally in China’s stock market.
SMM had noted that systemic risk, instead of fundamentals, was the major driver behind recent lead price falls.
China Securities Finance Corp announced to lend 260 billion yuan to big Chinese brokerage firms so they can buy more stocks. Stock market rallied in response, which also shored up metal markets, causing some shorts to unwind positions.
SHFE 1509 lead contract grew by the daily limit although the trading volumes were only about 3,000 lots. Movements in Chinese shares should be eyed in the near term.
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