More than a dozen Chinese financial institutions, mainly trust companies, loaned 20 billion yuan ($2.8 billion) over the past five years to Wuhan Kingold Jewelry Inc. with pure gold as collateral and insurance policies to cover any losses.
Caixin
Mystery of $2bn of loans backed by fake gold in China
Nasdaq-listed Kingold's play for trove of property stymied by corruption probe
The 83 tons of purportedly pure gold that Kingold creditors held in their coffers as of June would be equivalent to 22% of China’s annual gold production. © Reuters
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