Media reports: China tightens grips on stabilizing commodity market

In an escalated effort to cool off the overheating commodity market, the Chinese government ordered state-own enterprises to ‘control risks and reduce exposure to the overseas commodity markets,’ according to media reports.

In the meantime, the government is planning to release the national reserves of metals including copper, aluminum, and zinc for the first time since 2010, casting a bearish short-term outlook on the futures and spot domestic ground. 

Media reports added that the Chinese government has requested domestic firms to reduce the bullish bets on highly volatile raw materials on the local futures market.

The Chinese government has been working to curb the rising commodities prices, which would be eventually passed to consumers, hurting the economy.