In Depth: A bitter $1.4bn lesson on commodity price speculation

The epic crash last week of crude oil taught 60,000 Chinese investors a bitter, 10 billion-yuan ($1.4 billion) lesson on the risks of speculating in commodity prices.

The clients of Bank of China (BOC), one of the country’s largest state-owned lenders, were trying to buy on a dip in crude prices using a paper investment product known as Yuan You Bao. Little did they expect that values would keep on plunging past zero and well into negative territory.

One investor told Caixin that his entire 50,000 yuan ($7,063) investment in the bank’s Yuan You Bao product linked to West Texas

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Private equity firm CVC to invest $1.4bn in Japan market

TOKYO — CVC Capital Partners will invest roughly 150 billion yen ($1.39 billion) into the Japanese market over the next several years, said Atsushi Akaike, the global private equity firm’s head of Japan.

The firm raised $4.5 billion for a new Asia-Pacific fund in early April, exceeding its $4 billion target thanks to investors hungry for opportunities amid rock-bottom interest rates. The new fund attracted big pension funds from the U.S. and Europe, as well as a larger proportion of Asian players. About 30% of its investments will be made in Japan.

“Investment funds have been involved in relatively expensive

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