Why the current probe into copper stockpiles at China's Qingdao port is important and why there are consequences for the broader economy

Why the current probe into copper stockpiles at China's Qingdao port is important and why there are consequences for the broader economy. Global trading houses and banks are scrambling to check on their exposure to a probe into metal financing at China's Qingdao port, as concerns grow that a crackdown on commodity financing could hit trade in the world's biggest consumer. The investigation at the world's seventh-largest port is looking into whether single cargoes of metal were used multiple times to obtain financing. This means different banks and trading houses were holding separate titles for the same metal. The inquiry has revived worries about the impact of China's deepening credit crunch on its metal imports, many of which pile up in warehouses to be used as collateral. Just a few weeks ago concerns were expressed about China's huge iron ore stockpiles being used as security for bank loans.