Part of China’s gold reserves turned out to be gilded copper

A large scam has opened in China, in which the largest gold processor in the country, Wuhan Kingold Jewerly, has been involved. Some of its ingots turned out to be gilded copper.

The newspaper Vedomosti writes that 4.2% of China’s gold reserves were fakes. The audit revealed: under the control of WKJ there were about 83 tons of fake gold, and since 2013 it has been surrendered on bail.

After the forgery was discovered, the companies issuing the money demanded that the state insurance company PICC Property & Casualty compensate for the losses. As noted in the publication, they might not have learned about fraud if WKJ had not invested in the failed privatization of Tri-Ring, frozen due to a corruption scandal.

Until 2002, Wuhan Kingold Jewerly was a state-owned factory under the control of the People’s Liberation Army. Subsequently, General Jia Zhihong, who oversaw the work of the enterprise, became its main shareholder.

This is not the first such scandal with gold in China – in 2016 a similar fraud was revealed in Shaanxi province. Analysts in this regard are wondering if the country’s gold reserves are as large as official Beijing claims.