Citic Resources Holdings (1205.HKG) has moved to secure metals it owns in warehouses amid a fraud investigation, The Wall Street Journal reported, citing a Tuesday statement by the company. Citic Resources, the commodities trading unit of state-owned Citic Group, applied to courts in Qingdao to secure its aluminum and copper assets while concerns about fraud in commodities markets spreads to a second port city, Penglai. Traders fear being forced to sell commodities onto the market as banks and trading houses look into suspected fraud involving metals stored in China that were used as collateral for loans.
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