Date
18 December 2017
An investigation into a suspected financing fraud at Qingdao port may affect companies with metal inventories at the terminal. Photo: Bloomberg
An investigation into a suspected financing fraud at Qingdao port may affect companies with metal inventories at the terminal. Photo: Bloomberg

China Resources says Qingdao metal probe may hit group

China Resources Holdings Ltd. (01205.HK) said Tuesday an investigation into certain aluminum and copper products stored at Qingdao port in Shandong province may hit the group.

The company said in a regulatory filing it owns certain alumina and copper stored in bonded warehouses at Qingdao port. As a precautionary measure, it applied to the port city’s court and obtained sequestration orders in connection with the group’s alumina and copper.

Relevant parties at Qingdao port have been given notice to assist in the enforcement of the sequestration orders.

News of an investigation into a metal financing fraud at the port, where a third-party company is suspected of using single cargoes of metal multiple times to obtain financing, has rattled banks and trading houses and unsettled markets, Reuters reported Tuesday.

The status of the investigation is unknown to the group, and as such, it cannot accurately assess its impact on the company’s products stored at the port or on the group itself, according to the filing.

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TL/JP/CG

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