Source: https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A6683920487879380992
#China’s #biggest #gold #fraud, 83 Tons ~ 4% of its reserves Fake: At the centre of the fraud is #Wuhan #Kingold #Jewelry Inc., a company founded and operates out of #Wuhan: Mystery of $2 #Billion of #loans backed by #fake #gold in China: Nasdaq-listed Kingold’s play for trove of property stymied by #corruption #probe: The 83 #tons of purportedly pure gold that Kingold #creditors held in their coffers as of June would be equivalent to 22% of China’s annual gold production. More than a dozen Chinese financial institutions, mainly #trust #companies, loaned 20 billion yuan ($2.8 billion) over the past five years to Wuhan Kingold Jewelry Inc. with pure gold as #collateral and #insurance #policies to cover any losses. Kingold is the largest privately owned gold processor in central China’s Hubei province. Its shares are listed on the Nasdaq stock exchange in New York… What could go wrong? Well, plenty, as at least some of 83 tons of gold bars used as collateral turned out to be nothing but gilded copper. That has left lenders holding the bag for the remaining 16 billion yuan of loans outstanding against the bogus bars.
