News Column

PRESS: Standard Chartered Starts Legal Action Over Suspected China Port Fraud - WSJ

July 14, 2014

Alice Attwood

LONDON (Alliance News) - Standard Chartered PLC has begun legal proceedings in Hong Kong against the head of a commodities-trading firm that Western bankers say is at the centre of suspected loans fraud in the eastern Chinese port city of Qingdao, according to a report in The Wall Street Journal.

The paper reports that the lawsuit is the first publicly known legal action related to the suspected fraud to be made in Hong Kong. It follows other suits that have been filed in Shandong province where Qingdao port is located, said the WSJ.

The bank's suit targets Chen Jihong, who owns a Qingdao-based commodities-trading firm, Decheng Mining Ltd., which Western banking executives suspect illegally pledged the same stocks of commodities multiple times as collateral to get loans.

"We can confirm that we have started legal proceedings in Hong Kong against Chen Jihong of Decheng," a Standard Chartered spokeswoman said in an emailed response, said the paper.

Standard Chartered shares were trading 1.09% higher at 1,207.00 pence per share Monday morning.

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Source: Alliance News

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