In case you are not following it, be aware that there appears to be a brewing issue in China over the re-hypothecation of commodity stocks. The port authorities in Qingdao are investigating. It may be nothing or minor, but if it is widespread, it could be a very big deal.
Chinese commodity financing
Started by
libertas
, Jun 06 2014 09:38 AM
3 replies to this topic
#2
punter
-
- Traders-Talk User
- 1,899 posts
Member
Posted 06 June 2014 - 09:51 AM
In case you are not following it, be aware that there appears to be a brewing issue in China over the re-hypothecation of commodity stocks. The port authorities in Qingdao are investigating. It may be nothing or minor, but if it is widespread, it could be a very big deal.
Been highlighted as an issue in asia for the last few months. Chinese firms using fake lc bills to get cheap financing backed by dubious imports. Many banks in asia including us banks are involved. This is also part of the shadow banking problems in china. No one really knows how deep or wide it is.
Keep Calm and be Long
My opinion on markets, or anything, is a health hazard. Follow or fade at your own risk!
#3
libertas
-
- Traders-Talk User
- 351 posts
Member
Posted 06 June 2014 - 10:22 AM
In case you are not following it, be aware that there appears to be a brewing issue in China over the re-hypothecation of commodity stocks. The port authorities in Qingdao are investigating. It may be nothing or minor, but if it is widespread, it could be a very big deal.
Been highlighted as an issue in asia for the last few months. Chinese firms using fake lc bills to get cheap financing backed by dubious imports. Many banks in asia including us banks are involved. This is also part of the shadow banking problems in china. No one really knows how deep or wide it is.
So far it appears to be the warehouse receipts that are bogus, not the LCs. But of course we'll see.
#4
gm_general
-
- TT Member+
- 1,653 posts
Member
