THELOGICALINDIAN - The gold industry was annoyed aback it was apparent that 83 bags of affected gold confined were acclimated to aback loans account 20 billion yuan in China While Chinese authorities accept not said whether the absolute gold exists or area it is an cabal claims to apperceive what happened
The Mystery Behind the Chinese Scandal Involving 83 Tons of Fake Gold Bars
One of China’s better gold adornment manufacturers, Kingold Adornment Inc., was bent in a above affected gold aspersion beforehand this year. The aggregation acclimated 83 bags of gold confined to aback loans account 20 billion yuan ($3 billion) from 14 Chinese banking institutions. This bulk of gold would be agnate to about 22% of China’s anniversary gold production. However, the media reported in July that the gold confined angry out to be affected and were aloof gilded chestnut alloy, but the aggregation and its admiral denied any wrongdoing.
Kingold Jewelry is a Nasdaq-listed aggregation headquartered in Wuhan, China. Its allotment amount plunged 88% back the aspersion alike to $0.1334 on Wednesday. The aggregation appear in August its plan to voluntarily delist from Nasdaq.
While the Chinese authorities accept not appear area the absolute gold is or whether it alike exists, one man claims to apperceive what happened, NTD reported aftermost week. Yizhi Wei told the advertisement that the absolute gold confined were swapped for affected ones and banned out of China into Hong Kong area they were awash beneath bazaar prices. He claimed to be one of the middlemen.
The advertisement declared Wei as “a affiliate of China’s alleged red elite … from the Manchu indigenous minority.” In addition, “His ancestor was a chief antipathetic official” and “His grandfathering was a antipathetic advocate who helped the administration appropriate power.”
Wei detailed: “Every day it would appear in from the Chinese burghal of Shenzhen. We would go buy it every day, 10 kilos, 20 kilos, 30 kilos. Then we will advertise it in the afternoon on the aforementioned day. We fabricated money from the amount differences. We didn’t apperceive area the gold came from.”
He became assertive that the gold confined he bought and awash were the aforementioned ones as those acceptance to Kingold Jewelry because the numbers printed on them akin the ambit of numbers allegedly printed on Kingold Jewelry’s gold bars.
Wei added that about all organized abomination groups and triads in Hong Kong were complex in the gold laundering. They were amenable for contacting buyers and alteration the gold. He acclaimed that all the gold buyers they begin were big adopted investors, not Chinese ones. “That’s because there is a botheration with one being in China affairs gold in ample quantities so they were attractive for adopted buyers, those from the U.S., Europe, and Japan,” he explained to the account outlet.
Furthermore, he believes that the bodies actuality advised by the Chinese authorities over the affected gold aspersion are aloof scapegoats back the calibration of this operation is “not article one or two bodies can do,” acquainted that the bulk he got complex with “is aloof the tip of the iceberg.”
The gold confined were apparent to be affected in February but the media and Chinese regulators kept quiet about it until June, the advertisement acicular out. Wei opined: “Till this day, cipher knows area the gold is. That’s why I appetite to say that the Chinese arrangement is rotten from its roots.”
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