Qingdao Port: Shipments unaffected by investigation

Containers are loaded at the Qingdao port. The port handled a total of 125,000 20-foot equivalent units during the three days between May 31 and June 2. Yu Fangping / For China Daily

Operator quoted as saying probe may uncover irregularities of some traders

Qingdao Port International Co said on Wednesday that shipments from the port would not be disrupted due to an ongoing investigation on financing irregularities, according to the National Business News.

The operator of the world's seventh-biggest port in terms of output said it was investigating instances of financial irregularity involving some traders and related to the reuse of collaterals. "Financing frauds may exist, and this is an issue involving traders. The matter is currently under investigation," the Shanghai-based newspaper said quoting an anonymous source with the operator.

Port officials told China Daily that they had postponed an earlier plan to issue an official statement on the issue on Wednesday.

Media reports on Tuesday said that the northeastern port of Qingdao, which is scheduled to go public in Hong Kong on Friday, had halted shipments of aluminum and copper as authorities look into whether the metals warehoused at the port have been used repeatedly as collaterals to borrow money from different banks.

"We were told we can't ship any material out while they carry out the investigation," the South China Morning Post quoted a source at a trading house as saying in a Tuesday report.

The investigation has rattled investor confidence after reports that Chinese companies are now using commodities as collateral to obtain finance following restrictions on lending. Metals, especially copper and iron ore, are among the most commonly used commodities.

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