Angry investors 'capture' head of Chinese metals exchange after funds frozenComments Off on Angry investors 'capture' head of Chinese metals exchange after funds frozen
The head of a Chinese metal exchange has reportedly been captured by angry investors and handed over to police.
Investors in Fanya Metals Exchange had gathered outside a luxury hotel in Shangai to seize Shan Jiuliang after the company last month ceased payments on investment products.
When Shan attempted to check out, the protesters manhandled him into a car and drove him to the nearest police station, according to the Financial Times.
The police took the executive into custody and promised to investigate what happened to investors money. Shan was later released without charge.
The Fanya Metals Exchange buys and stockpiles minor metals such as indium and bismuth. It also offers high interest, highly-liquid investment products from its offices in Shanghai and a financing branch in Kunming.
It ran into liquidity problems in spring and is reported to be considering selling its stockpile of metals, which run into several years’ supply of some minor metals used in tech and military operations.
The trouble at Fanya is yet another symptom of the China slowdown, which shows no sign of abating.
A catastrophic week in Chinese markets rolled over on Monday, when the Shanghai Composite Index slid up to 9% following losses of 12% last week.