China Cracks Down on Commodity Traders With Probe Into Suspicious Deals

Chinese authorities are intensifying a crackdown on some commodities transactions they view as offering little economic benefit, leading to a pullback by industry participants that’s poised to reduce both trading volumes and volatility in the domestic market.

Authorities have escalated probes into trades they suspect are being used to obtain cheap financing or government subsidies rather than serving the real economy, according to traders and officials with knowledge of the investigations.