Chinese Billionaire Trader Shifts From Gold to Silver Short Position
A billionaire Chinese trader who previously made nearly US$3 billion from bullish gold positions has now established Shanghai's largest net short position in silver, with his current bet against the metal valued at approximately US$288 million.
From Gold Profits to Silver Shorts
Bian Ximing, who maintains a low public profile and spends considerable time in Gibraltar, has transitioned from his successful gold strategy to what market observers describe as a significant bearish position on silver. According to Bloomberg analysis of exchange data and sources familiar with his investments, Bian has built this substantial short position through the Shanghai Futures Exchange (SHFE).
The sources, who requested anonymity due to the private nature of the information, revealed that Bian's silver short currently stands at about 450 tonnes of the metal, equivalent to approximately 30,000 contracts. This position has generated paper gains of around 2 billion yuan (US$288 million) following silver's sharp decline of more than 16 percent in recent trading sessions.
Volatile Market Conditions and Position Management
Bian's substantial short position carries significant risk in what has become an increasingly volatile silver market. The trader has reportedly been forced to liquidate some positions at a loss during market fluctuations, demonstrating the challenges of maintaining such a large bearish stance.
Despite these challenges, Bian's current position appears to be paying off. Including previous losses, he stands to make a net profit of approximately 1 billion yuan based on his position and prices at the end of Tuesday trading. With silver continuing to slide in Thursday's trading session, Bian's potential proceeds have likely increased substantially.
Building the Position Through Zhongcai Futures
Exchange data indicates that Bian, operating through his brokerage Zhongcai Futures Co., began significantly increasing his silver short positions during the final week of January. While SHFE does not disclose the identities of individual investors behind brokerage accounts, sources confirm that Bian's personal bets—along with products he directly manages for a select group of clients—constitute the majority of the company's precious metals positions.
The data reveals that Zhongcai's silver short position surged to approximately 18,000 lots on January 28, then climbed further to about 28,000 lots on January 30, coinciding with Shanghai silver reaching an all-time high.
Market Context and Trader Background
Bian's substantial silver short emerges during a period of dramatic price swings that are prompting market participants to reconsider their approaches to precious metals. While many institutional investors continue to view gold as a hedge against interest-rate shifts, central-bank buying, and global uncertainty, silver's recent surge is increasingly perceived as an industrial rally driven largely by speculative positioning rather than fundamental economic factors.
The trader gained notoriety in China's futures markets for his aggressively bullish gold bets that began nearly four years ago. He represents one of several prominent figures who have dominated commodities trading since China's economic expansion began over two decades ago. Unlike many of his peers, Bian has distinguished himself through his reclusive nature and the loyal following his investment philosophy has attracted online.
Interestingly, Bian previously held a long position in silver from August of last year that generated more than 1.3 billion yuan in profit, according to calculations based on exchange data. However, beginning in November, he started shifting his position, attempting to time the market peak with tentative moves that occasionally resulted in trading losses.
From last week onward, Bian has maintained his short position with increased conviction, spreading his exposure across longer-dated contracts and holding through upward price movements. Neither Bian nor Zhongcai Futures responded to emails seeking comment on these trading activities.
