10.06.2014 - Worries Hit Commodity Finance Sector as China Opens Investigation
Is the metal stored in a Chinese warehouse really there? Has the peanut oil shipment that a bank loaned money against been swapped for worthless water? Basic questions like these have begun to play on the minds of traders and bankers doing business in China, the world’s largest importer of raw materials, after an investigation began at Qingdao Port, a huge trading hub in the northeast, into whether more than one license had been issued for the same material. The duplication, which leaves buyers out of pocket when they claim what they thought was theirs, may be a result of deliberate fraud by a company using the same metal to raise multiple loans...............................................Full Article: Source
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