Port Finance International Events - covering global port developments

Search site

RSS
Monday, 29 September 2014

Officials implicate banks in $10bn Qingdao Port financing fraud

Officials from China’s State Administration of Foreign Exchange (SAFE) have implicated commodity financing banks in fraud allegations surrounding the alleged $10 billion in fake trades that went through the port, according to Chinese news source Xinhua.

"Some banks facilitated the abnormal increase in transit trade financing and fake trade deals by failing to fulfill the responsibility of authenticity checks and offering services of transit trade financing and receipt and payment," Wu Ruilin, deputy head of the Supervision and Inspection Department of SAFE said.

Ongoing investigations are still uncovering the extent of fraud at the port which involved several companies fabricating seals and warehouse receipts at the Qingdao Port in order to obtain multiple loans from banks.

In total 15 cases are under investigation for fake transit trade pending criminal liability prosecution. In response to the fraud investigations several global banks including HSBC and Standard Chartered, have launched their own legal actions to protect an estimated $900 million they have invested in connected businesses.

"Fake trades not only increase the pressure of hot money inflows, but also provide illegal channels for cross-border capital flows," Ruilin commented.

ABOUT US

Port Finance International provides online news and conferences worldwide. It is a platform and a community for senior industry experts and players to review and discuss the market. Our online news team provides daily coverage of international port finance, investment and operations news. A weekly e-newsletter- sent to readers free of charge - covers the key news and views of the week.

Port Finance International's conferences and training programmes are held across the globe. These events feature key industry figures and they address market challenges and trends as well as providing industry players with essential networking opportunities.

Follow us

Newsletter

Sign up for our free newsletter