China is booming and so is its fraud.

Gold Fraud

Listed on NASDAQ stock exchange, Kingold Jewelry is one of the world's largest privately owned gold processor company headquartered in Wuhan, the place of origin of Coronavirus, took a loan of more than 20 billion Yuan (2.8 billion dollars) with pure gold as collateral.

As per the report, The Chinese Company misrepresented to the tune of 83 tons of the yellow metal. This is equivalent to 22 percent of China’s annual gold production or 4.2 percent of China’s gold reserves as of 2019.

The loans are covered by 30 billion yuan of property insurance policy issued by Chinese InsurerPICC Property and Casualty Co. Ltd. (PICC P&C) and other smaller insurers. It was unearthed when company defaulted in repayment to one of its creditor Dongguan Trust Co. Ltd. (a Chinese shadow bank). To recover the loan amount, it tried to liquidate the collateral securities i.e. Gold bars which turned out to be a glided copper alloy.

After Dongguan Trust Co. Ltd, another creditor China Minsheng Trust, one of Kingold's biggest creditors sought an order from Court to test collateral gold bars. The results were same, the gold bars were actually a glided copper alloy.

The United States cannot allow Chinese companies, an overhang of the CCP, to loot American money. US-China tensions are at an all-time high and Chinese credibility at an all-time low. Don’t be surprised if the Trump administration ends up imposing a blanket ban on the listing of Chinese companies on American Stock Exchanges. If China doesn’t play fair, there is no reason why it should be allowed to play.


CA Shubham B Chhajed

You are not logged in. Please login to post comments.

Copyrights © All Rights Reserved.