SHANGHAI Futures Exchange (SHFE) has struck Nanchu Management Group off its list of qualified delivery warehouses, the exchange said on Friday (Jun 30).

Nanchu will not operate any delivery warehousing business for SHFE starting from Jul 1, according to a statement published on SHFE’s website.

State-owned Nanchu, headquartered in Foshan in China’s southern Guangdong province, dealt with the delivery of physical metal products – copper, aluminium, zinc, lead and tin – for SHFE.

Shanghai Nanchu, a subsidiary of Nanchu Management Group, was one of a number of companies alleged by state media last year to be holding aluminium stocks that had been pledged several times over.

Nanchu Group and Shanghai Nanchu could not be reached for comment after business hours on Friday, while SHFE did not immediately respond to Reuters’ request for comment on why it made the decision. REUTERS