Citic Resources Says Port Probe May Affect Metal Reserves

Citic Resources Holdings Ltd. (1205), the commodities trader controlled by China’s largest state-owned company, said an investigation may impact on its inventory of metals stored at the nation’s Qingdao Port. The stock fell.

The company owns alumina and copper stored in bonded warehouses at the port, and has obtained sequestration orders for its assets as a “precautionary measure,” Citic Resources said today in a statement to the Hong Kong stock exchange.

China’s Qingdao Port is counting industrial metals held in some of its bonded warehouses to determine if they match the amount in documents pledged to banks as collateral for loans, three people with knowledge of the probe said on June 5. The port is concerned that there has been multiple counting of some batches of metals including copper and aluminum, said the people.

“Until the status of the investigation is clarified, the company is not able to accurately access its impact on the group’s alumina and cooper stored,” Citic Resources said.

The stock fell 5.3 percent to HK$1.26 at 11:10 a.m. in Hong Kong trading.

To contact the reporter on this story: Fox Hu in Hong Kong at fhu7@bloomberg.net

To contact the editors responsible for this story: Jason Rogers at jrogers73@bloomberg.net Tan Hwee Ann, Madelene Pearson

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.