(Corrects figure in first paragraph to be in US dollars not
BEIJING/ HONG KONG Aug 28 Industrial and
Commercial Bank of China suffered under $200 million
in bad loans as a results of a suspected fraud in China's
Qingdao port, the lender's president Yi Huiman said at a media
conference in Beijing on Thursday.
Qingdao Port is at the centre of a fraud investigation into
a private metals trading firm, Decheng Mining, which allegedly
duplicated warehouse certificates stored at the port to pledge a
metal cargo multiple times as collateral for bank
The full financial impact of the Qingdao case is unclear,
but publicly traded banks and trading firms have been forced to
disclose potential losses.
HSBC, Standard Chartered, Citi, Standard
Bank, Mercuria Energy Trading SA and Citic Resources
Holdings Ltd have more than $880 million of exposure,
according to company statements and reports.
ICBC, the country's largest bank, earlier reported its
lowest second-quarter profit growth in five years and an
increase in bad loans, affected by a slowing economy.
Chinese lenders are poised to raise a record $120 billion in
funds over the next two years to shore up their balance sheets
in the face of rising bad debts and to comply with stricter
global capital requirements known as the Basel III rules.
(Reporting by Xie Heng in Beijing and Engen Tham in SHANGHAI,
writing by Lawrence White in HONG KONG)