26-06-2014, 09:45 PM
Next wave of default might come from Commodity sector, rather from the property developers...
China finds US$15b of loans tied to falsified gold deals
26 Jun 2014 16:35
[SHANGHAI] Chinese gold processing firms have since 2012 used falsified gold transactions to borrow 94.4 billion yuan (US$15.2 billion) from banks, the country's chief auditor said.
Commodities such as copper, rubber, soybeans and bullion have commonly been used in China for financing, where traders or investors borrow against the commodity with the aim of investing the money in high-return areas such as real estate or shadow banking.
Most such deals are legitimate, but revelations of borrowing based on fake transactions in the gold market by the national auditor, which comes on the heels of alleged metals financing fraud at Qingdao Port, may prompt authorities to launch another crackdown on commodity financing.
Source: Business Times Breaking News
China finds US$15b of loans tied to falsified gold deals
26 Jun 2014 16:35
[SHANGHAI] Chinese gold processing firms have since 2012 used falsified gold transactions to borrow 94.4 billion yuan (US$15.2 billion) from banks, the country's chief auditor said.
Commodities such as copper, rubber, soybeans and bullion have commonly been used in China for financing, where traders or investors borrow against the commodity with the aim of investing the money in high-return areas such as real estate or shadow banking.
Most such deals are legitimate, but revelations of borrowing based on fake transactions in the gold market by the national auditor, which comes on the heels of alleged metals financing fraud at Qingdao Port, may prompt authorities to launch another crackdown on commodity financing.
Source: Business Times Breaking News
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡