China discovers $15B in false loans

|By:, SA News Editor

China's national chief auditor has discovered $15.2B worth of loans connected to falsified gold transactions. The loans date back to 2012, and were borrowed from numerous banks.

Chinese traders and investors are known to borrow against commodities such as gold, copper and soybeans, and most of it is valid trading. However, the Chinese audit office has found many gold processing firms that borrowed based on fake transactions in the gold market.

Further investigation may result in new restrictions on commodity financing.

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