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CITIC Resources latest firm to warn over China port probe

Published on Jun 10, 2014 10:23 AM

HONG KONG (REUTERS) - CITIC Resources Holdings Ltd said on Tuesday that metal it stores at China's Qingdao port may be affected by a probe into suspected fraud, the latest in series of global banks and trading houses potentially caught up in the scandal.

The investigation at the port, where a third-party firm is suspected of using single cargoes of metal multiple times to obtain financing, has also rattled markets as worries deepen over whether problems could extend to other ports and curb the use of metal as collateral for financing.

The investigation into the status of aluminium and copper products stored at port may hit the group, CITIC Resources said in a filing to the Hong Kong bourse.

CITIC Resources' commodities import and export business owns some alumina and copper stored in bonded warehouses at the Qingdao port, the world's seventh busiest.

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