Standard Chartered made provisions in China fraud

Standard Chartered Shanghai Towers

Standard Chartered said it made provisions of about $175m related to a fraud in China, where the government is investigating a lending scandal involving metal stockpiles in the port city of Qingdao.

Bloomberg News reports that the bank’s so-called other impairments jumped by $174m to $185m in the first six months of the year, compared with just $11m in the same period in 2013, the lender said today as it reported earnings.

The amount of that total related to the Qingdao scandal was about $175m, according to Shaun Gamble, a bank spokesman.

Standard Chartered had previously sued Chen Jihong, the Singaporean owner of a metal-trading company that’s under investigation in China for allegedly pledging metals multiple times as collateral for loans. Standard Chartered says it’s owed $35.6m under a loan agreement with Decheng Mining, one of Chen’s companies, according to a Hong Kong lawsuit last month.

To access the complete Bloomberg News article hit the link below:

Standard Chartered Provisions $175 Million in China Fraud

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