Categories: Business

China's biggest gold fraud, 4 percent of its gold reserves may be fake. The biggest gold scam surfaced in China! 83 tons of gold reserves fake

Photo: PIXABAY

China's biggest gold fraud, 4 percent of its gold reserves may be fake

new Delhi. The biggest fake fraud has come out in China. According to a report, more than 4 percent of China's total gold reserves, ie about 83 tons of gold, is fake. According to a report by China's website Zero Hedge, one of China's largest jewelers and listed on Nasdaq, Kingold Jewelery, has been accused of having fake bars of gold as collateral to take loans from 14 financial institutions. At the same time, the company took a loan of 16 billion yuan by pledging 83 tons of gold. Most of this gold was merely gilded copper. This is 22 percent of China's total annual production and 4.2 percent of the country's gold reserves as of 2019.

Kingold Jewelery Company, whose headquarters are in Wuhan, from where the corona virus also originated. Kingold China is the largest gold processor in Hubei Province. Its chairman Jia Zhihong is a former officer of China's Army People's Liberation Army. According to the report, the Kingold Jewelery Company had placed 83 tonnes of gold bricks-biscuits in reserve for security, insurance and insurance for a loan of 16 billion yuan (Rs 17,017 crore). But the investigation revealed that it is copper.

Let me tell you, the case was revealed when the Kingold company did not give a loan to Dongguan Trust Limited (Shadow Bank of China) in February this year. The company then brought out gold bricks made by Kingold as collateral. After which he was examined, it was found out that he is copper. When this news came to the fore, there was a panic among the banks and financial institutions that loaned Kingold. After this, the China Minsheng Trust, the largest lender to the Kingold Company, got gold bricks checked by Kingold as collateral. Investigation revealed that all this gold is also fake copper. Investigative agencies are investigating this. Earlier in 2016, a similar scandal was uncovered in Hunan Province.

Now the Chinese government has given the task of recovery to China's insurance company PICC Property and Casualty Cooperative Limited. It is being told that this loan will now be recovered from 30 billion yuan of Indian currency worth Rs 32,073 crore. Let me tell you, the market cap of Kingold is 60.41 crores. Kingold owner Jia Zhihong says that his company did not keep any fake gold. Talking to the media, Zhihong said that the Kingold Company was established in 2002, when it used to be a gold factory. The factory got permission from the People's Bank of China, but these fake reports are spoiling the company's image. (Input-IANS)

This post was published on July 2, 2020 7:30 pm

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