Wednesday, June 25, 2014

China ponzi scheme involving commodities as collateral claims first victim ( June 25 , 2014 ) ----China state copper firm chief jumps to his death ........ Copper Snaps Win-Streak As Imports Plunge 17% & Default Fears Reignite ......... China's Port-Ponzi-Probe Spreads To Entire Warehousing Sector


http://www.globalpost.com/dispatch/news/afp/140625/china-state-copper-firm-chief-jumps-his-death


The head of a $2.0-billion Chinese copper producer fell to his death from a building, the firm announced Wednesday, and a state-run newspaper said he committed suicide following corruption allegations.
The chairman of state-owned Tongling Nonferrous Metals Group, Wei Jianghong, died on Tuesday after falling off a building, the company said in a statement.
A string of officials have killed themselves in recent months, with speculation linking some to a crackdown on graft launched by President Xi Jinping after he took office last year.
State-run media said Wei jumped from a hotel owned by the company in Tongling, the city in the eastern province of Anhui where it has its headquarters.
The China Business News quoted a source as saying the incident might involve corruption since disciplinary authorities had initiated an investigation involving Tongling.
Tongling's profits have declined in recent years due to the sluggish world economy and slower domestic demand, reports said.
Its net profit for 2013 slumped 38 percent year-on-year to 573 million yuan ($92 million), according to an exchange filing.
Shares of Tongling, listed on the Shenzhen stock exchange, were down more than four percent on Wednesday afternoon after the announcement, but its market capitalisation was still 12.7 billion yuan.
Tongling said authorities were investigating the incident and the board had appointed vice chairman Yang Jun as acting chairman. It added company operations were normal.
In April the deputy chief of the Chinese government agency that fields grievances from citizens, Xu Ye'an, killed himself in his Beijing office although the details surrounding his death remain unclear.
State media also reported that Li Wufeng, deputy director of China's government information department, "fell to death", also in April.




http://www.businessinsider.com/head-of-20-billion-copper-company-jumps-to-death-amid-corruption-allegations-2014-6


The head of a $2.0-billion Chinese copper producer fell to his death from a building, the firm announced Wednesday, and a state-run newspaper said he committed suicide following corruption allegations.
The chairman of state-owned Tongling Nonferrous Metals Group, Wei Jianghong, died on Tuesday after falling off a building, the company said in a statement.
A string of officials have killed themselves in recent months, with speculation linking some to a crackdown on graft launched by President Xi Jinping after he took office last year.
State-run media said Wei jumped from a hotel owned by the company in Tongling, the city in the eastern province of Anhui where it has its headquarters.
The China Business News quoted a source as saying the incident might involve corruption since disciplinary authorities had initiated an investigation involving Tongling.
Tongling's profits have declined in recent years due to the sluggish world economy and slower domestic demand, reports said.
Its net profit for 2013 slumped 38 percent year-on-year to 573 million yuan ($92 million), according to an exchange filing.
Shares of Tongling, listed on the Shenzhen stock exchange, were down more than four percent on Wednesday afternoon after the announcement, but its market capitalization was still 12.7 billion yuan.
Tongling said authorities were investigating the incident and the board had appointed vice chairman Yang Jun as acting chairman. It added company operations were normal.


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From Zero Hedge......





Tyler Durden's picture

Copper Snaps Win-Streak As Imports Plunge 17% & Default Fears Reignite


Quietly behind the scenes, amid all the chaos of the Qingdao probe's contagion, copper has rallied modestly in the last seven days. That streak ended last night as thewarehousing concerns we noted spreading to the entire sector, combined with a collapse in Chinese copper imports (down 17% in May), and yet another default (China Ting holdings said said two borrowers defaulted on entrusted loans). So it seems that not only are the commodities missing, but so is the money...as the slow motion train wreck gathers pace(no matter what PMIs or minis stimulus do to evade the tightening) asChina's money-market rates (at 5 month highs) suggest liquidity demand is very high (and desperate).



Tyler Durden's picture

China's Port-Ponzi-Probe Spreads To Entire Warehousing Sector

"The banks still haven't looked under the hood,"warns one executive as the probe at Qingdao port (centering around the duplication of warehouse certificates in order to use a metal cargo multiple times to raise financing) begins to spread to the entire Chinese warehousing sector. As Reuters reports, even if banks or their customers have insurance for the metal, some warehouse sources said they might struggle to get paid if fraud is uncovered or their agents are implicated. Though many global firms are involved in the warehouse industry in China, there has been outsourcing to local firms to cut overheads and avoid dealing with complex local regulations. That appears to have back-fired. One thing looks certain, however, banks involved in commodity financing in China are set to charge higher fees: "The cost is certainly going to go up, whether it's going to be from local banks or international."