* Move came after Reuters reported broker built bullish positions
* Gelin Dahua placed bets on behalf of private coal investor
By Tom Daly and Ruby Lian
BEIJING/SHANGHAI, Oct 25 (Reuters) - Chinese futures broker Gelin Dahua Futures Co Ltd on Wednesday slashed its long positions in copper on the Shanghai Futures Exchange by 17 percent, a day after Reuters reported it was placing bullish bets on behalf of a coal mining investor.
Gelin Dahua, owned by securities firm Shanxi Securities Co , offloaded more than 11,000 lots worth 3.06 billion yuan ($460.59 million) on the futures contracts for delivery in February, March and April 2018, data published by the bourse showed.
That reduced its long positions on Shanghai copper futures < to nearly 55,000 lots on Wednesday, from about 66,000 lots the previous day, according to Reuters calculations based on the data.
On Tuesday, Reuters reported that a private coal mining industry investor in Shanxi province was behind the dramatic rise in bullish bets in Chinese copper futures, built up through Gelin Dahua.
Gelin Dahua could not be immediately reached for comment.
Its long position was down by 7,278 lots, or 64 percent from a day earlier, for the February 2018 contract, to 4,106 lots, the bourse data showed. That meant Gelin Dahua is now only the third-biggest long position holder among futures firms for that month.
For March, its position was reduced by 3,241 lots, or 24 percent, although Gelin Dahua retains the top spot for that month, with 10,201 lots, and for every further month out to June. Its April position was down 600 lots, or 4.3 percent.
The reduction in Gelin Dahua’s position coincided with a 1.3 percent drop in Shanghai’s most-traded copper futures contract on Wednesday.
The company previously held more than 35 percent of the open interest in copper contracts on the Shanghai bourse in the first half of 2018.
$1 = 6.6437 Chinese yuan Reporting by Tom Daly in Beijing and Ruby Lian in Shanghai; Editing by Manolo Serapio Jr.