The story has been around for a while but is becoming more concerning as State-owned Citic Resources has moved to secure metals at a warehouse, as concerns about fraud in commodities markets spread to a second Chinese port.
The Wall Street Journal has the story (gated), here: Citic Seeks to Secure Metal in Chinese Port of Qingdao
- Separately, Western banks worry that the potential fraud has flared up at a second Chinese port, Penglai, also located in Shandong province, according to people familiar with the matter.
- Banks and trading houses are looking into suspected fraud involving metals stored in China that were as collateral for loans, according to people with knowledge of the matter
