Chinese Investors Still Scouring for Gold, Copper Assets

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A growing number of private sector Chinese investors are on the hunt for gold and copper resources in countries such as Australia and Canada, advisers and analysts told Reuters Africa on Monday.

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Growing investment abroad has been identified by Beijing as a strategic priority as it looks to slow the rise of its foreign currency reserves and help its firms climb up the global value chain.

“In the past year, we saw almost $8 billion dollars of dedicated equity money organised into funds that are based in Hong Kong,” Jorge Ramiro Monroy, managing director of Hong Kong-based adviser Emerging Markets Capital, said at a mining conference in Melbourne.

“These funds by and large haven’t started investing yet. The effect that will have on the market could be quite significant,” said Monroy, adding that the bulk of the funds came from Chinese financial institutions. The resilience of copper prices has led some analysts to predict a bull market in 2015.

US copper producer grade 110 price saw a 1.3% drop on Wednesday, September 24, landing at $3.74 per pound and making it the biggest mover of the day. The price of US copper producer grade 122 weakened by 1.3%, settling at $3.74 per pound. The price of US copper producer grade 102 fell 1.3% to $3.93 per pound. The cash price of primary Japanese copper held steady around JPY 781,000 ($7,195) per metric ton.

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Chinese copper prices were mixed for the day. Chinese copper bar ended the day at CNY 49,380 ($8,048) per metric ton, after the 0.6% drop yesterday. The cash price of Chinese copper saw a 0.6% decline to CNY 49,580 ($8,080) per metric ton. The price of Chinese copper wire saw essentially no change for the fifth day in a row, remaining around CNY 50,395 ($8,213) per metric ton. For the fifth consecutive day, the price of Chinese bright copper scrap held flat at CNY 44,300 ($7,220) per metric ton.

The copper 3-month price is back up, rising by 0.2% on the LME on Wednesday to close at $6,750 per metric ton. The primary copper cash price rose 0.2% on the LME to $6,797 per metric ton after a two-day drop.

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