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Post by milspec on Jul 7, 2020 12:21:00 GMT 10
Over the past week or so I've seen quite a few references in non mainstream media to a Chinese company which pulled off a USD 2.8Bn fraud usingfake gold bars as collateral for loans. Now its starting to get a mention in Western media (Wall street Journal and Australian Financial Review). Since the company is listed on the US stock exchange the collapse of the company will hurt western investors. Its another nail in the coffin for dealing with Chinese companies. Not sure if this is significant enough for Trump to take more punitive measures against China, but it certainly isn't improving relations in any way. The AFR article is for subscribers only but this link to Indian media gives some background. www.businesstoday.in/current/world/biggest-gold-fraud-busted-in-china-83-tons-of-fake-gold-bars-used-as-loan-collateral/story/408497.html
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bug
Senior Member
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Post by bug on Jul 7, 2020 13:49:21 GMT 10
Anyone putting money into China and losing out can cry me a river.
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Tim Horton
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Post by Tim Horton on Jul 8, 2020 13:52:17 GMT 10
Uh--huh..... Makes one wonder... Fraud devised by individuals or small group for the sole purpose of getting money..?? Or fraud set up with government approval to do fraud.. ?? Think the truth will ever come out ?? ??
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fei
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Post by fei on Jul 9, 2020 11:10:10 GMT 10
This kind of thing is a dime a dozen in China. Local heavyweights use their government or military connections to get contracts, write off debts etc.
Local governments are also notoriously tardy in paying their debts, as there's not much you can do about it.
When you see news stories about villagers fighting with police because their homes have been demolished, its usually because the compo they get has "vanished" or the government has decided to pay it over a decade rather than the lumpsum promised. Meanwhile, the developer builds whatever the project is, sells it and runs, before they find out he got the contract through connections or bribery, owes his workers and suppliers a lot of money etc etc.
We personally know one family who had to take their local government to court to get their compensation for their land, but the government still refused to pay. By the time they got the money fifteen or so years later, they were bankrupt from all the court fees, while the money wasn't enough to buy one apartment let alone the three they could've bought if they had been paid at the time.
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