Qingdao Port Story Continues to Ferment; Great Timing as Qingdao Port IPO Hits Market

It looks like some folks don't want to hold copper through the weekend.

渣打回应"叫停新客户金属融资"：将持续提供服务

recently reported that Qingdao Port financing Piandai events continue to simmer, with Qingdao Port depth of copper and aluminum and other metal stocks and collateral investigations, banks and traders have started to review the financing of metal exposure Following South Africa's Standard Bank admitted that suffered losses after the Standard Chartered Bank halted for some Chinese metal financing business from new customers.

Standard Chartered Bank today NetEase said, the bank has taken note of and concerned about some of the current events related to China's commodity financing, saying commodity financing is a key business of Standard Chartered Bank, the bank will continue to provide support.

Qingdao Port is the world's seventh largest port, China's third largest foreign trade port, is mainly engaged in all kinds of import and export cargo containers, crude oil, iron ore, coal, grain handling, storage, transit, distribution and other logistics services and international passenger services . Qingdao Port said Tuesday investigating whether iron ore is currently being used to repeat the pledge of warehouse receipts, fraudulent loans from different banks. In addition, sources said, in the range of copper and aluminum Piandai financing problems are being investigated.

Learned that the financing involved Qingdao Port prevailed before mine and steel trade financing pledge repeated almost exactly the same - as a third party warehousing company and corporate collusion, and even collusion of bank lending officers, for the same number of goods, issuing more than one warehouse and enterprises looking for different banks pledged to defraud multiple loans.

Earlier, South Africa's Standard Bank Group has issued a statement saying the company is located in Qingdao Port of metal warehouse activities to investigate irregularities June 4. The statement stressed that "any loss of Standard Bank Group in this case is not yet possible to quantify."

The investigation was well timed a week ahead of Qingdao Port International's IPO.

Investors tepid on Qingdao port IPO after metals stockpile investigation

Retail investors left Qingdao Port International high and dry as most of them decided to steer clear of its initial public offering amid investigations into allegations that firms have inflated metals stockpiles at the port to generate more bank financing.

In a statement to the stock exchange yesterday, Qingdao Port said it received applications from just 824 retail investors for 11.9 million shares, accounting for about 15 per cent of the entire retail tranche.

The poor response from retail investors came even after the state-owned company, sensing tepid market conditions, cut its original offering size by more than half.

The company, based in the coastal city of Qingdao in Shandong province, raised HK$2.49 billion after six cornerstone investors bought US$167.7 million worth of shares, nearly half of the entire deal.

Qingdao Port in weak debut, concerns over metal financing probe weigh

Shares in China's Qingdao Port International Co Ltd weakened in their Hong Kong trading debut on Friday amid concern that the company could be hurt by a probe into metal financing at the world's seventh busiest port.

Shares closed down 1.3%.