POLL RESULTS: Market believes Qingdao probe will lead to greater financing restrictions

The continuing difficulties at the Chinese port of Qingdao have sparked growing concerns among market participants about possible consequences.

A probe has been launched into the alleged fraudulent use of warehouse receipts multiple times to raise finance at the port.

In a poll on its website, Metal Bulletin asked whether there would be any long-term repercussions for lending against commodities following the Qingdao port probe.

A total of 37% of respondents believe there will be more restrictions on financing, and/or the availability of letters of credit, while 14% believe it will be more expensive to borrow.

Just 6% believe western banks will withdraw from commodities lending, while 29% believe all three of these consequences are likely.

A total of 14% of respondents said they believe there will be no long term repercussions and the issue will remain localised to Qingdao.

You can find all Metal Bulletin’s coverage of the Qingdao story here.

editorial@metalbulletin.com