Southwest China's Kunming Intermediate People's Court will fine the Fanya Metal Exchange 1 billion yuan ($149.39 million) for violating national law and illegally raising funds from the public, according to local media reports on Friday March 22, with minor metals markets now wondering how funds will be raised.
Shan Jiuliang, board chairman and president of Fanya, was sentenced to 18 years' imprisonment for embezzlement. Shan also had 50 million yuan of his personal property confiscated and was fined 50,000 yuan, Chinese state news agency Xinhua reported on Friday. Three other defendant companies and 21 individuals have been also fined by Kunming Intermediate People's Court. Stocks could be released to pay investors This news has raised concerns among market sources that minor metals stocks held in Fanya warehouses will be auctioned to raise funds to repay investors. "The fine is less the investor-loss. The question now is how they will pay them back and whether or not they will release the material," a European minor metals trader said. The Kunming, China-based Fanya Metal Exchange collapsed in 2015, owing investors more than 40 billion yuan. No...