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News Link • Precious Metals

Here's What You Need To Know About The Crisis In The Chinese Metals Market

• Business Insider

At issue are numerous loans that have been made with copper and aluminum pledged as collateral. The growing concern is that the same copper and aluminum has been pledged multiple times improperly.

A subsidiary of a Chinese aluminum producer, Dezheng Resources, is being investigated for allegedly pledging the same stock of aluminum and copper against multiple banks, to access cheap funding, reports Lucy Hornby at Financial Times.

Qingdao Port said last week that there were ongoing investigations into commodities held at Dagang Port, which is under Qingdao's management.

Chen Jihong, founder of Dezheng was detained as part of a different investigation, and this prompted banks to check their exposure to Dezheng.

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