Cargoes at Qingdao moved to LME warehouses

[SYDNEY] Some copper cargoes held at China's Qingdao Port were being shipped to more regulated LME warehouses, industry sources said, as banks and trading houses took precautions over a probe into metal financing at the world's seventh-busiest port.

Shares in China's Qingdao Port International, the main operator, also weakened in their Hong Kong trading debut as investors responded cautiously.

The investigation is looking into whether single cargoes of metal were used multiple times to obtain financing, according to industry sources. Trading houses and banks have sent executives to the port to physically check on their exposure, while some banks have stopped new metal financing to some clients in China.