| Chinese companies are getting caught up in commodity trade finance trouble, as borrowers are securing loans using warehoused aluminum and copper as collateral – and allegedly using the same collateralized stock multiple times for multiple loans. Should Industrial Metals Buyers Worry About This?
Surely, it is an internal Chinese matter; if a few Western banks have got themselves caught up in it and get burned as the clients default, the underlying commodity proves to not be there or pledged elsewhere, well, some may say, that’s their fault for lending in such an unregulated market...............................................Full Article: Source
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