Chinese Trader Who Made $1.5B on Gold Builds Giant Bet on Copper Price

A reclusive Chinese billionaire, Bian Ximing, known for his remarkable foresight in gold trading, has shifted his focus to copper, amassing nearly $1 billion in long positions as the metal gains appeal amid ongoing geopolitical tensions between the U.S. and China. Bian, who relocated to Gibraltar seeking a quieter life after building a fortune in plastic tubes, has become China’s biggest bull on copper following his successful foray into gold futures that netted him approximately $1.5 billion in profit.

As of late last week, Bian’s brokerage, Zhongcai Futures Co., holds nearly 90,000 tons in copper futures contracts, making it the largest net long position on the Shanghai Futures Exchange. This estimation accounts for Bian’s capital and the funds managed by Zhongcai. Despite concerns raised by geopolitical unrest prompting some investors to withdraw, Bian remains confident in his strategy, continuing to bolster his copper investment, which some market observers believe reflects an enduring bullish outlook on both the metal and the Chinese economy.

Strategic Positioning Amid Market Turmoil

“In a market characterized by short-term strategies, Bian’s position is unique and worth monitoring,” commented Li Yiyao, a vice president at Cofco Futures Co. This bullish sentiment aligns with Bian’s past trading strategies during tumultuous times, standing firm when many traders shifted their focus away from the market.

While China’s commodities sector has been shaped by prominent figures, Bian stands out not only for his considerable investments but also for his relatively solitary approach. Described as unassuming, he manages Zhongcai remotely through video calls from Gibraltar, where he enjoys a tranquil lifestyle, far from the frenetic pace of Shanghai.

Investment Philosophy and Market Insights

Bian’s investment philosophy has garnered him a significant following in China, where his online writings attract attention from those aspiring to emulate his distinct approach, which aligns closer to traditional Western hedge fund strategies compared to speculative local practices. He emphasizes the importance of detachment from ego to identify and invest in the right targets — concepts he outlines in his periodic blog posts.

“A good investor must let go of their own ego and focus on trends, timing, and costs,” wrote Bian in a January post. His insights reflect a deep understanding of market nuances and strategy implementation, qualities that set him apart from many trading contemporaries.

Outlook on Copper

Bian’s bullish outlook on copper is echoed by other industry experts, including Kostas Bintas, metals boss at Mercuria Energy Group Ltd., who suggested that copper prices could soar to $12,000 to $13,000 per ton, surpassing current valuations around $9,500. However, sharp price volatility poses challenges for accurate predictions in the copper market.

Bian’s past involvement with copper futures showcases a strategic pivot; just before the U.S. elections in November, he transitioned from short to long positions, anticipating changes in local manufacturing investments alongside potential stimuli from the Chinese government. Further tightening of his positions in early 2025 has yielded considerable profits, reportedly generating around $200 million at the end of April, isolating him from short positions.

The Bigger Picture

Ironically, Bian’s concentrated bets in Shanghai proved fortuitous, as local market closures during national holidays shielded his positions from broader market sell-offs. Despite some investors reallocating their assets, concerns primarily linked to the trade war and recession fears, Bian has demonstrated resilience by reinforcing his long positions in both Shanghai and the international arena.

Traders interpret Bian’s actions as symptomatic of China’s evolving economy, which is shifting towards high-tech industries that demand substantial copper input. The billionaire’s investment underscores a belief in China’s capacity to weather economic storms and the strong potential for copper prices to continue an upward trajectory.

Personal Backstory and Entrepreneurial Journey

Born in 1963 in the aftermath of China’s Great Leap Forward, Bian’s entrepreneurial spirit was cultivated amid significant national challenges. After establishing a successful business manufacturing high-quality plastic tubes in 1995, he expanded his investments into various sectors, including financial services and properties both domestically and internationally.

Bian acquired Zhongcai Futures in 2003, positioning himself at the forefront of China’s futures trading environment. His prowess and distinctive methodology, characterized by independent decision-making, have earned him a notable reputation within the commodities trading landscape.

While Bian has witnessed tremendous success, not all ventures have thrived in parallel. The recent flight to safety—for instance, gold investments—has adversely impacted his equity and bond investments, showing both the opportunities and traps inherent in the investment realm. As Bian articulates through his reflections, navigating investment landscapes requires an astute balance of caution and ambition.

Conclusion

In an era marked by increasing volatility and uncertainty, Bian Ximing’s investment trajectory in copper highlights his belief in the metal’s key role in the global economy. While he navigates turbulence, his confident positioning and forward-thinking strategy could offer crucial insights for both traders and investors alike.