China’s Qingdao Copper Scandal Results in Mass of Lawsuits

According to Reuters, the recent scandal in Qingdao regarding the use of copper as collateral for financing multiple loans is leading to quite a number of lawsuits.

As quoted in the publication:

The suits, which have been filed in Hong Kong, Singapore and London, show what happens when trade-finance deals that are done every day go sour. Chinese authorities and bankers are investigating whether traders fraudulently used the same stockpiles of metals to secure multiple loans from Chinese and foreign banks.

Some lawyers have had to dust off old legal books to understand the laws in Hong Kong and elsewhere that govern what appear to be hundreds of millions of dollars in disputed claims.

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