SHANGHAI, April 26 (Reuters) – Shanghai has officially
started receipt financing for metals stored at bonded warehouses
at the Yangshan free trade zone, the Shanghai Securities News
reported on Thursday.
The warehouse receipt financing scheme, which allows firms
registered in the free trade zone to increase their cash flow by
using metals in bonded warehouses as loan collateral, was
officially launched on Wednesday, the paper quoted Shanghai Free
Trade Zone Administration as saying, with copper and aluminium
being the approved metals for now.
Jiangxi Copper’s Shanghai logistics unit, metals
trader Maike Group, and Shanghai Hanjun International Trading Co
have signed strategic cooperation agreement with Bank of China
for the receipt financing.
The three companies have obtained a total financing capital
of $1.45 million for their copper stored at Yangshan port, the
paper added.
China’s other largest banks ICBC , China
Construction Bank , the Agricultural Bank
of China , Bank of Communications Co Ltd
(BoCom) have been selected as settlement
banks for the pilot scheme.
A total of 24 commodities firms, including Citigroup
at the end of first quarter, the paper said.
Yangshan has the capacity for 200,000 square metres of
bonded storage area for commodities.
Industry sources estimate that around 80 percent of China’s
imported copper stock has been used to secure financing over
past few months.
