Standard Bank started legal proceedings in China after about R1.7-billion worth of aluminium was held in bonded warehouses.
The bank's UK unit, which trades commodities, is seeking to "protect its position" in regard to the stocks at Qingdao Port and an additional R400-million worth of aluminium at other locations in Shandong province, it said yesterday.
Qingdao Port is counting industrial metals held in some of its bonded warehouses to determine if they match the amount in documents pledged to banks as collateral for loans, people with direct knowledge of the probe said.
Standard Bank, which has operations in Beijing and is 20% owned by the Industrial & Commercial Bank of China, is involved in commodities trading in various regions including China, South Africa and London.
"The financial consequences of these exposures remain subject to assessment and will be addressed in the group's interim results" on August 14, Standard Bank said.
Just R20 for the first month. Support independent journalism by subscribing to our digital news package. 
