More financial institutions exposed to Camsing fraud scandal - Caixin
|The latest story carried by Caixin warns of the spillover effects of the Camsing fraud scandal on other Chinese firms.
Key Details:
“Camsing Global founder Lo Ching was detained over an alleged supply-chain financing fraud.
The detention of Camsing Global found continued spreading through China’s finance sector as more institutions disclosed their exposure.
Shenzhen-listed metal products manufacturer Jiangsu Fasten Co. Ltd. on Tuesday said its wholly owned subsidiary Shanghai Mosan Factoring Co. Ltd. held outstanding asset management products worth 2.9 billion yuan ($422 million) involving financing for Guangdong Zhongcheng Industrial Holdings Co., a Camsing subsidiary controlled by Lo, as of June 30.
The detention sparked fears that billions of yuan raised by Camsing and affiliates through asset management products are backed by falsified transactions and accounts receivable with business partners including e-commerce giant JD.com and Suning.com.”
The Aussie witnessed fresh selling on the above headlines, with the rates falling back to the 0.70 handle.
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