Haven’t seen any threads on this, so thought I’d ask economically oriented 'dopers what effect, if any, the recent revelations of Kingold using fake gold to secure over $4 billion in loans will have on the China’s or the worlds financial institutes? I’ve heard various things from a ripple effect on banking institutes in China to it will have no effect at all, so was wondering what 'dopers thought. Here is a link to an article (it was the first up on Google, so if the site is some sort of offensive one to 'dopers political sensibilities feel free to Google up your own) in case anyone doesn’t know anything about it.
Since the OP is asking for opinions, let’s move this to IMHO.
Colibri
General Questions Moderator
Isn’t this on the heels of the Chinese Starbucks competition getting caught wildly misrepresenting it’s income/value, and being sanctioned or threatened with being delisted from the Stock Exchange?
I’m sure I read somewhere the fear is these events could end access to the exchange for Chinese companies looking to list.
You can kinda see their point.
There’s also the Wirecard scandal, which shows this problem goes beyond China.
I’m speculating that there will be other revelations of companies claiming ownership of fake assets. It remains to be seen if this will end up being seen as “a few bad apples” or if will become a widespread issue throughout the global economy.