ARTICLE
19 May 2015

Beyond Decheng Mining

CC
Clyde & Co

Contributor

Clyde & Co is a leading, sector-focused global law firm with 415 partners, 2200 legal professionals and 3800 staff in over 50 offices and associated offices on six continents. The firm specialises in the sectors that move, build and power our connected world and the insurance that underpins it, namely: transport, infrastructure, energy, trade & commodities and insurance. With a strong focus on developed and emerging markets, the firm is one of the fastest growing law firms in the world with ambitious plans for further growth.
Stephen Tricks and Philip Prowse outline the issues raised by the Qingdao phantom metals scandal and identify potential solutions.
China Finance and Banking

Stephen Tricks and Philip Prowse outline the issues raised by the Qingdao phantom metals scandal and identify potential solutions.

It has been around 12 months since the name Qingdao entered trade finance terminology worldwide, not as the home of a fine beer to accompany a bowl of noodles, but as the location for a warehousing scandal that has rocked the commodity finance community.

Much has been written in the meantime on the problems at Qingdao; several banks and trading companies have had to instruct their lawyers, but getting to the bottom of events in Qingdao is by no means easy. The Chinese authorities have been reluctant to release much information, saying that the investigations continue. It may fall to the courts outside China to try to work out the details of what went wrong - indeed, at the time of writing, the High Court in London is due to deliver judgment on the dispute between Citi and Mercuria over the early repayment of repos following the discovery of the Qingdao fraud.

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Original article featured in April 2015 issue of the Trade & Forfaiting Review.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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