According to people familiar with the matter, Xiang Guangda, who triggered the epic short squeeze of the “demon nickel”, has notified banks and brokers that he does not intend to reduce his short nickel positions. This move highlights the self-confidence of the “world nickel king”. This means that once the London Metal Exchange (LME) resumes nickel trading, it may face a new wave of shocks.
Xiang Guangda, chairman of Tsingshan Holdings, told regarding 10 banks and brokers in recent discussions that he still thinks nickel prices will fall and wants to maintain a short position, three sources said. Xiang Guangda also made the same point in a meeting with all banks on Thursday (10th), people familiar with the matter said.
Xiang Guangda proposed at Thursday’s meeting that some of Tsingshan’s assets in Indonesia be used as collateral for the debt, the sources said.
Some banks fear a repeat of the short squeeze if the nickel market resumes trading while Tsingshan continues to hold short positions, the people said.For them, it is difficult to force Xiang Guangda into action, as the bank might lose billions if he drops his promiseDollar。
At present, Xiang Guangda is still discussing with the bank, and it is not clear what position the bank of Tsingshan Holdings will take. Sources said earlier this week that Xiang Guangda was considering what to do with the empty orders, possibly clearing them all.
Nickel prices soared as much as 250% in two days due to an epic short squeeze, and the LME announced on Tuesday morning that it would suspend nickel trading until further notice.
Regarding the rumors of foreign capital’s malicious air squeeze, Xiang Guangda said in an interview with China Business News on Tuesday: “Foreigners have indeed made some moves and are actively coordinating. Today, I received many calls, and relevant state departments and leaders are very supportive of Qingshan.” He added Said that there is no problem with Qingshan’s positions and operations.
The 2021 Hurun Global Rich List shows that Xiang Guangda’s worth has reachedRMB 21.5 billion yuan. Among the 2021 Fortune Global 500, Tsingshan Holdings ranks 279th.
