Bloomberg reported that China has sent investigators to Guangdong to look into a “seven-fold surge” in precious metals exports. The team includes Ministry of Commerce and General Administration of Customs staff.
As quoted in the market news:
Shipments of precious metals, including jewelry, rose to about $10.8 billion in September from $1.39 billion a year earlier, according to customs data released Oct. 13. Gold prices in Shanghai today dropped the most since December.
China has stepped up scrutiny of commodity and foreign exchange trades amid evidence of widespread fraud. Authorities uncovered almost $10 billion in fake trade nationwide and identified 94.4 billion yuan ($15.2 billion) of loans backed by falsified gold transactions in June. Hong Kong, which borders Guangdong, unexpectedly overtook the U.S. in September as the top destination for mainland shipments. That prompted speculation the data was masking capital inflows to bet on China’s rising currency.