Author Topic: Chinese gold scandal of 2020  (Read 530 times)

adroth

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Chinese gold scandal of 2020
« on: July 03, 2020, 12:36:22 PM »
Kingold Jewelry secures US$2.8 billion in loans with gilded copper bars, in latest fraud that embarrasses China, irks US

https://www.scmp.com/business/companies/article/3091185/kingold-jewelry-secures-usus-28-billion-loans-gold-plated-copper

Nasdaq-listed Kingold, one of China’s largest jewellery makers, allegedly used 83 tonnes of gold bars as loan collateral, which later turned out to be gilded copper, according to a report by the Caixin news outlet

It follows Luckin Coffee’s recent fraud case and is sure to fuel a recent drive by US politicians to expel Chinese companies from Wall Street

< Edited >

The Wuhan-based company is alleged to have used fake gold bars as collateral to fraudulently obtain 20 billion yuan (US$2.8 billion) in loans, in a case that risks fuelling a recent drive by American politicians to expel Chinese companies from Wall Street.
Shares of the Nasdaq-listed gold processor plunged by almost a quarter after the allegations emerged on Monday morning on the website of Caixin, a mainland Chinese financial news outlet.

< Edited >

According to Caixin, the fake gold was exposed in February when Dongguan Trust set out to liquidate Kingold’s collateral to cover defaulted debts. Late last year Kingold allegedly failed to repay investors in several trust products.

Kingold was founded in 2002 by Jia Zhihong, who formerly served in the military in Wuhan and Guangzhou. The company designs and makes 24-karat gold jewellery and ornaments, selling both directly to retailers as well as through major distributors across China.
In November, Kingold posted a net loss of about US$24 million, or US$2.18 per share, for the nine months ended September 30, 2019. Net sales for the nine months were US$1.43 billion, down from US$1.84 billion over the same period in 2018.
« Last Edit: July 03, 2020, 11:52:21 PM by adroth »