News Column

Fraud Loan Investigation Expanded to Iron Ore, Soybean

June 13, 2014

QINGDAO, June 13, SinoCast -- Penglai Port was questioned to involve in the Qingdao Port fraud loan investigation this week and Citigroup, Standard Chartered and other Western banks and CITIC Group'sCITIC Resources were also involved.

An executive from a commodity hedge fund company yesterday predicted the Chinese government will expand the investigation to iron ores and soybeans.

Research data by Goldman Sachs showed China's commodity financing reached USD 160 billion, gold, copper and iron ore are most-used collateral for financing and soybeans, palm oil, rubber, nickel, zinc and aluminum are also used. The Qingdao Port investigation was very much concerned because commodity financing has become an important part of China's shadow banks.

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Source: Sinocast Banking & Credit Beat (China)

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