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Angry Chinese Investors Capture Head Of Metals Exchange In Predawn Hotel Raid
Meet Shan Jiuliang.

He’s the head of Fanya Metals Exchange and he was captured in a daring predawn raid in Shanghai on Saturday.

As FT notes, "Fanya is a forum for trading minor metals like indium and bismuth that has also functioned as a shadow banking conduit — not only leveraging metal deposited with the exchange as collateral for loans, but offering high interest investment products to retail investors."
If that sounds familiar to you, it should. Just last week in "The 8 Trillion Black Swan: Is China's Shadow Banking System About To Collapse?," we took a fresh look at the dizzying array of wealth management products and collective trust products that are, together, a CNY17.2 trillion industry in China. Summarizing a (very) long and convoluted story, WMPs are marketed to investors through banks as a high yielding alternative to savings deposits. Investors aren’t often aware of exactly what they’re investing in or how risky it might be or that in many cases, issuers borrow short to lend long resulting in a perpetual case of maturity mismatch.
"A key issue is whether the presumption of implicit guarantees is upheld or the authorities allow failing WMPs to default and investors to experience losses arising from these products," the RBA said in a report, to which we responded that in the event investors are forced to take losses, "the key issue is what those investors will do next."
Well, now we know.
First they will stage angry protests and then, if their money is not returned to them in about a month, they will travel from all corners of the country, stake out a hotel, kidnap the issuer of the WMP and haul him away to jail. Here’s FT with the story:
The head of a Chinese exchange that trades minor metals was captured by angry investors in a dawn raid and turned over to Shanghai police, as the investors attempted to force the authorities to investigate why their funds have been frozen.
Investors have been protesting for weeks after the Fanya Metals Exchange in July ceased making payments on financial investment products. The exchange, based in the southwestern city of Kunming, bought and stockpiled minor metals such as indium and bismuth, while also offering high interest, highly-liquid investment products from its offices in Shanghai and its financing branch in Kunming.
Some investors flew in from faraway cities to join hundreds more surrounding a luxury hotel in Shanghai before dawn on Saturday. When Fanya founder Shan Jiuliang attempted to check out, they manhandled him into a car before delivering him to the nearest police station. Shanghai police took Mr Shan into custody and promised to work with local authorities in Yunnan province to investigate what has happened to investors’ money. They later released him without charge.
The demonstrations in Shanghai and Kunming and the exchange’s unusual accumulation of several years’ supply of some metals have so far failed to attract much public attention from regulators. A report by the local regulator identifying the exchange as one of the bigger investment risks in Yunnan was redacted to remove reference to Fanya late last year.
The exchange began to experience liquidity problems this spring. Fanya is estimated to hold several years’ supply of minor metals used in some high-tech and military applications, which it purchased at above-market prices. The exchange’s travails are pressuring prices for some of these metals, as traders anticipate it will have to sell its stockpile.
The exchange, which has acknowledged it has problems, is backed by several of China’s minor metals miners. It has said it has found a buyer but won’t identify the company. Mr Shan “was deceiving us. He admitted to us that there is no buyout group,” said one disgruntled investor surnamed Gu, who participated in the rainy early morning raid.
Mr Shan has been holding regular meetings with exchange backers since problems first surfaced this spring and was on the way to Guangzhou for a business trip when captured.
As you can see, we are not at all joking when we contend that any move by China to allow for defaults and permit market forces to play a larger role in determining which investments eventually sour is likely to be met with a severe public backlash, especially for something like WMPs where investors believe they may have been deceived.
If Shan Jiuliang's bad weekend is any indication of what's in store for the Politburo once the PBoC loses complete control of the stock market, managing the yuan and restoring economic growth may be the least of Xi Jinping's worries.

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Shit's getting real!!
Of the 10 conflicts in human history with the highest death tolls, 5 were civil wars in China.
Yes, you people are obsessed with death. How many tens of millions did your hero Mao slaughter?
Oh, I know! I know! Not enough?
Free Jon Corzine!
Corzine should meet the same fate but Americans are cowards these days ! Any wonder all has gone to hell in a basket ?
Wish it was the Bernank. Yellen, just put her in one of Hillary's orange prison jump suits.
Just wait until 1.4 billion angry chinese figure out it's the jews that had 'em and procceed to make the nazis look like boy scouts :)
They won't. They will blame the US. As for the statement on Mao-he did what he had to do to regain control over a US/UK lead opium addiction.
Yeah, all credible drug addiction recovery programs utilize murder as a means of restoring the addict to good health.
Hey dick head I'm not saying it was right, I am only stating history. Fuck off.
This Shan guy shows real potential, maybe we could get him released and put him in charge of one of our regulatory agencies.
Wonder if he'd convert to Judaism? I think that may be a prerequisite of late.
I vote they give him a fair trial before hanging him.
However, tell me how much he's worth and how high up he is, and I'll tell you the verdict beforehand. China is no different then Merika. TBTJ get a slap on the hand.
They released Shan. tbtj
MF Grobal
Seems to me that the CME might want to read and heed..
and some folks might not consider delivering them to the crooked authorities.
.. just a thought.. :-)
The Fit Hit The Shan?
Things seem bad. But they've been worse. This misery is all part of being human. Word to your mother.
The Fit Hit The Shan?
Ahah! A "contreprètrie" in French (sophisticated words play).
I drink these like good wine when so à-propos. +1 to you my good Sir!
HINT: Mao wins.
Top Ten Most Evil Dictators of All Time (in order of kill count)http://popten.net/2010/05/top-ten-most-evil-dictators-of-all-time-in-ord...
The day I see them doing this to Blankfein is the day I am sitting on why deck having a cold one and thinking life sure is fucking good.
A dead addict does decrease demand though.
I believe your Mao dates are off by 100 years. The Opium wars were mid 1800s. Mao was born in 1893.
He was a commie though.
China's opium wars were in the 1800s which was well before Mao became communist dictator of China in 1949.
Mao came from a rich farming family and Mao converted to Marxism–Leninism while studying at Peking University and became a founding member of the Communist Party of China (CPC). Mao helped to establish the Red Army during the Chinese civil war between the Kuomintang (KMT) and the CPC. On October 1, 1949, Mao proclaimed the foundation of the People's Republic of China (PRC), a single-party state controlled by the CPC.
During Mao's Great Leap Forward, at least 45 million Chinese were worked, starved or beaten to death in China between the years of 1958 to 1962.
http://www.independent.co.uk/arts-entertainment/books/news/maos-great-le...
I stand corrected.
+1 for admitting you were wrong. It is easy to be misinformed these days, especially if you consult "history books". You were probably thinking of the Hopium Wars, in which Obama genocided tens of millions of capitalist clingers....
Welcome to the Rabbit Hole.
For more info just Google: ”Mao and Yale”
Skull and Bush Bones, anyone?
“The Yale-China Association was first incorporated as the Yale Foreign Missionary Society, and was known informally as Yale-in-China as early as 1913…..
Between 1919 and 1920, future Chairman Mao Zedong had several encounters with the school: he edited its student magazine, re-focusing it on "thought reorientation," and operated a bookshop out of its medical college.[1][2]”
https://en.wikipedia.org/wiki/Yale-China_Association
"During World War II, 'Yale in China' was a primary instrument used by the U.S. Establishment and its Office of Strategic Services (OSS) to install the Maoists into power.
'Yale in China' was run by OSS operative Reuben Holden, the husband of Bush's cousin, and also a member of Skull and Bones. "The Maoists made China into the world's largest opium producer.,
http://forum.prisonplanet.com/index.php?topic=154829
This stuff can be verified through numerous credible sources and guess what...
The rise of China to a modern manufacturing and export giant, the technology transfers and the job transfers from the US to China was NOT A MATTER OF HAPPENSTANCE.
It was engineered by US banks and trans-national corporations.
TTIP and TPP anyone?
i'll back you up on every bit of this, Manthong (because every bit of it's true). 'NGOs' (and their various incarnations) have been used as fronts from the beginning -- and the rabbit hole never ends...it is additionally interesting to note that yale was founded and initially endowed by the profits from a certain opium company.
if the chinese ever find out that they're but 1.3 billion beta-test subjects, things could get dicey in sino-land. hell, if americans ever find out that they're but 315 million beta-test subjects, things could get dicey in columbia. actually, the same could be said for almost all of the world's present inhabitants.
sadly, it sometimes seems that delta & epison drones don't seem to mind if they're beta-tested...so long as you keep the soylent green hot & spicy (and remember to wash it down with something rich in nutritious electrolytes)!
janus
http://www.abovetopsecret.com/forum/thread351447/pg1
...for instance, Saddam Hussein, Yasser Arafat, Mikhail Gorbachov, George Bush and Tony Blair are all 33rd degree Freemasons. Marx, Engel, Lenin, Stalin, Trotsky, and Mao-Tse Tung were all high-level Grand Orient Lodge Freemasons. Winston Churchill was Committee of 300 and a Mason. Cecil Rhodes founded the Round Table, was Committee of 300 and a Mason. Henry Kissinger is a Mason, Knight of Malta, Committee of 300 and a Bilderberger. Dick Cheney is CFR and Trilateral Commission. David Rockefeller founded Bilderberg and the Trilateral Commission, and is also CFR, Committee of 300 and a Mason. These are the biggest, most powerful names in politics, all meeting in secret with no minutes, and no media coverage. Our public servants making private policy decisions behind closed doors. This has been the rule, not the exception, for longer than most people realize.
[Emphasis mine.]
I fail to see the distinction.
To be fair, it was Tel Aviv ..
http://www.veteranstoday.com/2015/08/23/israels-rage-and-impotence-the-f...
I comment as klaatuaquinas and asked for a clarification. That clarification is in progress. Understand we are dealing with classifed info here via the present IAEA ..
The W54 pits are modified/enhanced Davy Crocketts. Up to 350 of them were stolen from Pantex in Amarillo ..
http://www.veteranstoday.com/2015/06/13/ordered-suppressed/
Newly formed ...Chinese ISSIS rebel forces thank you American CIA
Might sound astounding to you, but, nothing to see here folks, you can go about your........night.
He meet a similar fate.
"Shanghai police took Mr Shan into custody and promised to work with local authorities in Yunnan province to investigate what has happened to investors’ money. They later released him without charge."
"They later released him without charge."
They may be more convincing in their 'investigations' but make no mistake about it, members of the club are just as immune to prosecution there as they are here, probably even more so.
"No, please, not the briar patch!"
I'm sure the next mob of angry investors will not repeat this group's mistake of trusting the police.
Americans still have too much to lose to run down to Goldman Sachs and grab Johnny Dimon, stuff h in a trunk of a BMW and drive him to police headquarters.
Well he didn't mean too, sword, meet heart.
Wow. Imagine China's population without them
I'd rather imagine the level of technology we would have.
And it probably wouldn't have been too much higher, as people tend to have fewer children when conditions start to get cramped.
Stop spreading these anti-human lies please. Only white people have ever shown the capacity to exercise self control to such a great degree as to actually reduce their populations to the point of cultural, national, and racial suicide. The non-white populations everywhere are BOOMING like never before.
Yet MCD and YUM kill thousands everday......
no doubt and how many suffer or die from pharma ? more than Mao killed over time, thats for certain. Kill a few million , pay a fine and sell off the balance of the product to third world nation and keep on truckin ! all part of doin biz in USSA today.
So why is it so few can actually see the many illusions we all live under here in USSA today ? this is a test .
Decreasing fertility rates are a function of industrialization, higher educational standards (particularly among women) and rising standards of living (i.e. access to contraception). It is unrelated to ethnicity. The country facing the most pressing demographic issues is, in fact, Japan.
This seems difficult to grasp for lowly educated White Supremacy types.
Eirik knows all about being lowly educated as a dumb leftist Scandinavian who allowed his welfare country to be conquered without a shot being fired. When he's not posting crap here, he's out orally servicing his muzzy masters.
and his chocolate wife.
Man with hand in pocket feel cocky all day.
~ Old Chinee Proverb
Man who feel cocky all day have sticky pocket.
not so old Chinese proverb.
Man who goes thru airport turnstile sideways going to Bangkok
Another Chinese proverb
what's the capital of bangkok?!
??
nevermind! *kicks nuts*
Hahaha, yes, ohhh. ar So funny. american'eal': entertaining the lowest common denominator on an internet message board. Tell us again about the americanreality family vacation to Lake Pissitcumfromme when you saw some First Nations people. That was so awesome, ar!
Ghod can flying spaghetti monster worshippers be sanctimonious diaper baby sensitive hypocrites. How I loathe that.
The Japanese are non-white and have very low birth rates. They are not replacing themselves and have been talking about immigrants as a solution.
There goes your theory into the garbage.
Average child per Bangladeshi family...2.2. I know it is hard when facts don't mesh with your prejudices.
So does that mean they have 30 kids and on average 2.2 live past the age of 2 or what?
Indium. Bismuth. Two "minor metals" that China dominates.
They dominate the rare earths even more tightly. I wonder if the rare earth metals are affected by Fanya.
Download the UK's supply risk list from the page here:
http://www.bgs.ac.uk/mineralsuk/statistics/risklist.html
It's hard to believe strontium is on that list as a high-supply-risk.
Hell, just park a barge off the Fukushima coast and start sucking up the strontium floating around the plant. Don't worry about running out - there's an underground drain that spews about 400 tonnes of strontium-tainted water ever day.
You're NEVER going to run out of strontium. Hair and white blood cells - yes. But strontium-90? No way. You just hit the mother lode, baby - and it's free for the takin'.
Some say strontium is in high demand - chemtrail industry.
i hear its great for bones as well. good shit.....
Rare earth's are not rare in China.
I can't stop smiling. The great unwind is underway. Get ready for some real crazy sh*t.
No doubt!
Wake me up when it is the Head of CME being taken and turned over to CFTC. Not that it would actually do anything......
In this country, the authorities had Jon Corzine after he stole millions. And they just let him go.
Which is why those with money like JC will escape justice. Only those who brought him in to the police will be arrested for "aggrivated assult charges". God Bless the USA.
Osmium
you omitted 'the Honorable'...jeeesh..no respect in this world....
If I would have added "honorable", I would have puked.
Well shit, dude! The fellow was turned over to the police who took him into custody and then released him without charge.
The cops rescued him!
Yes, the Chinese apparently believe that justice somehow exists in China. Wait til they find out they're permanently fucked.
If this is the great unwind, i'm not smiling about it. Shit IS about to get real, and shit stinks.
So much for the Chinese being so smart and planning in terms of decades, etc. Turns out they think with their dicks and their stomachs just like the rest of us.
The police released him; they probably drove him to the airport to catch the next non-stop flight to Cali where he most likely has his multimillion dolla house.
IT'S HAPPENING!
http://giphy.com/gifs/paul-comment-ron-5mBE2MiMVFITS
This is what we were all born for. This moment in time, right here. We DO live in interesting times...
Even though I expect it to happen, I'm not smiling. A giant-sized glob of human suffering comes as a side order to that unwinding, and there is no telling who it will strike or how hard.
Let us have peace -- campaign slogan of US Grant 1868
Agree... but it needs to happen
I agree. It's going to be nasty and a lot of people are going to be hurt. My only hope is that I get to see jim cramer get so flustered and worked up that his head explodes on live TV. It's the little things...
Actually it started a while back and has simply gained momentum recently and will continue to do so. who coulda known, Hey ? :)
as more parts and pieces of the illusions begin to unwind.
just about time for the rael fireworks show to unfold soon enough as the USD becomes a relic and the great RESET ensues. It has been brewing ever since 2007 this time around.
No worries. Pension funds can now put 30% in the stock market.
move on nothing to see here; hee hee......
Maybe we should leverage that some more so we can make it up when it turns.
I recommend: bismuth-indium swaptions. That's where the smart bitcoin is going nowdays.
I'm thinking of starting a metal default swaps product, too. It pays off when you find out the Chinese warehouse holding your phys. doesn't exist.
I see his head is still attached...more work to do!
Rope is portable and has many uses.....
Americans get raped three times in fifteen years and they'll go back for a fourth time. Bankers should have been swinging long ago.
They say Asians only imitate and rarely innovate. Maybe it's time we follow their lead on this.
Not before we free Jon Corzine. We need to do that before we can get any serious political action going.
We're too lazy. But if every gun owner in the US sent only one of his guns to a pissed-off Chinaman, we might see some real fireworks.
sure enough, jsut like the Wildebeast and Lemmings
I think we just need that trigger event....
Market thoughts:
http://thetradingcrucible.blogspot.com/
The Chinese woman in that picture looks like Mrs F0ster...
Now you know why the house is a mess and dinner isn't ready when you come home at night.
Is this where we discredit the Yuan because of a corrupt exchange?
No, corrupt government.....
But you repeat yourself...
Nodebt , how do you say nail gun in mandarin ?
edited due to Chinese characters not showing.
I think it's more, how do you say 'anti-aircraft gun'...
You mean Pinyin.
The written form in Western alphabet... or whatever the linguistic term is.
ergo, one says nothing in pinyin, its writing
This is what people should have done to Jon Corzine....plus adding a guillotine to the story.
Lead the charge my friend, we are all right behind you.
no doubt and why is he in hiding ?
The sheeple in the land of the free will never capture billionaires Dimon and Blankfein and hand them over to the police for trial. But then Wall Street owns America and its politicians and regulators.
Welcome to a fascist, police state where corrupt banksters rule with impunity and immunity.
Until the police and military wake up and understand they aren't defending freedom and liberty the sheep will continue to stay in a slumber. I find it interesting the police were the one's the people turned the shyster over to.
Were that to happen here, the police would be on body pick-up duty.
Heard London is just like the USA as Usual... on Max Kaiser and the guy that ran for mayor of London.
The police have no authority over financial matters.
In the USA we created the FTC to deal with the money Trust, but then took the authority from them to deal with financial crimes.
And they turned him loose without charges as soon as the yokels were gone.
Meanwhile, there's a new file of dangerous counter-revolutionary yokels being built as we speak.
In China, the cops buy their positions. You think John Law in the West is corrupt, hah.
If the system there takes no action there will be hell to pay...
They have to do something to keep the people's faith in the system, I'm sure it's gotten a lot of attention.
Thank you
Well they are young they will figure it out.
The CCP will learn to break down agency responsibility like the USA so that they can deny knowledge of the activities. Plausible Deniability the CIA calls it. They share the official responsibility or at least say they do. They claim well too many people were involved to point the blame.
And the people... they will find eventually that the police don't have jurisdiction regarding financial crimes and arrest authority for heads of Exchanges and Banks...
Dual citizenship and political asylum in Tel Aviv doesn't hurt, either.
That's Not Just an Observation. That's a Prediction.
...or do you have some facts?
Ah, dude, I can't disagree with you on this. I just felt you were crushing all hope... but who am I kidding?
We do already live in a police state.
Time to send him to the "re-education camp."
https://en.wikipedia.org/wiki/Cultural_Revolution
Hang em high.
Cherchez la Goldman Sachs position
This could happen to Yellen.
First mistake.........handing him over to police lol. If they aren't paying, they're busted.
smart and smug when they win, whiny little bitchez when they lose. yep, they are just like socialist fascist commie americunt infestors.
I think most of the citizenry here hates the bankers and politicians as much as if not more than you. I say fuck you for blanketing all of us with your statement.
WTF? Don't leave out the Lawyers, Lobbyists, and Propagandists.
Not sure whether to use the S/ here.
If only we did this 7 years ago.
I made much more money in the past seven years than I ever did in previous climates.
How's it look after adjusting for inflation? (And not the BLS's fairy tale version of inflation.)
Can we make it trend on The Googles and The Twitters?
F'in awesome. Grab Lord Blankfein and the rest of the zios and ditch em in the east river.
We could learn something from these folks.
No, we haven't learned anything since the last crash. Thank our education system for that...
Meanwhile in North Korea:
http://www.nbcnews.com/news/world/s-korea-detects-unusual-submarine-acti...
NK is a decoy.
Believe the propaganda at your own risk.
US provoking world war.
Noooooo, you're kidding me? Thanks for the enlightenment.
+1 The only reason NK exists
Thats a lie. Norks exist so Dennis Rodman has somewhere to go to cross dress in public
Just imagine all the tight little North Korean ass that guy gets when he makes the trip over there!
The worm has turned.
https://www.youtube.com/watch?v=p53gl93y7Kk
Interesting footnote: I got that same blazer at the FED gift shop.
RE: propaganda; I notice reently about every fifth article on Yahoo's main page bashes the PRC. The others bash Trump or inform us of the latest Kartrashian move.
It is easy to bash.
Americans love Bashing every time.
Don't read too much into it.
Our people are not that smart.
Yup, a bunch of Yahoos...
America is the North Korea of the universe.
Israel is being surrounded. Giving it all up for Psychotic State of Israel, ground zero for Master Thieves and Accomplished liars is not going to happen.
The world has a common enemy and the money trail is not hard to follow, it goes straight to the bankers and Israel, the only nation on the entire planet not only thriving but expanding.
Where's the rope?
Hanging.....judges......chambers.
.
I don't think the Chinese will stop there. Next they will be showing up on the shores of the U.S.A. to do the same.
Jon Corzine woulda bitch slapped some punk ass investors and their punk ass citizens' arrest. https://youtu.be/9efgLHgsBmM
hey old shan had the right cufflinks too bitchez
This is going to be just like The French Revolution. Heads will roll in China.
Quick, call HSBC. Time to start the opium trade back up.
The chinese have balls and the law lets them run with it unlike the Zionist controlled "shit yard" that is the U.S. of A.!!!
Where the fuck would you ever see an American take Janet Yellen, Jamie Dimon, Lloyd Blankfein and Larry Silverstein to the top of the Freedom Tower to give all of them the last "sky dive" sendoff they will ever forget for their crimes?!!!!
If my doctor ever tells me Im real sick and have only six months to live, Im your guy.....
If my doctor ever tells me Im real sick and have only six months to live, Im your guy.....
What can I tell ya BC "Spirit of 76"! It's what made this Country what it was up untl December 23. 1913.
Those Chinese are freer than you and I could ever hope to be!!!
Let that sink in real good!!!