Standard Bank says has $170 million exposure to China metal fraud
SHANGHAI, July 10
SHANGHAI, July 10 (Reuters) - Standard Bank Plc said it has a total exposure related to China's Qingdao port of about $170 million worth of aluminium, and has started legal proceedings in Shandong Province to protect its position.
The bank, a subsidiary of Standard Bank Group, said in a statement on Thursday it also has an exposure of $40 million worth of aluminium at other bonded warehouse facilities in Shandong Province, and has started legal proceedings to secure its positon.
Qingdao port, the world's seventh busiest, has been at the centre of an investigation looking at whether a private metals trading firm issued multiple warehouse receipts so that the same metal cargo could be used multiple times to obtain financing.
Standard Bank said the financial impact of its exposures were still being assessed and would be addressed in the group's interim results on Aug. 14.