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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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1913?
Yeah, I was thinking more like April 1865.
1913?
Yeah, I was thinking more like April 1865.
Very true. Lest we forget the mass genocide of the indigenous ones that the "framers" didn't even dane to consider as part of "We The People"... Too horrific to put into words!
Our legacy unfortunately has ALWAYS been 1 step forward 4 steps back!
Jack Ruby?
I liked JFK, but yeah, America could sure use an army of Jack Ruby's right now. Just headed for the right targets.
What if said Dr. lost his wad @JPM & lied to you?
Arg! Aye matey, there is the rub.
Capitalist living in compounds, ride in limos, have private jets, have private security personnel... and it is the outsized Compensation and Perks of Capitalism that provide this/Enable the Addict!!
Wherefore, and Whereas the Communist is less ostentatious, less visibly wealthy unless ruling the country... then they wear $1000 dollar suits.
So, we said we were going to give you a choice at the beginning of the show and now you have to decide. No phone a friend, no help from the audience...
Do you want to live in China/HK or Singapore or USA/UK?
Good on them. I'm really surprised they were mericiful in taking him to a police staion instead of ripping him to shreds, you know, like we should be doing to our investment bankers ( or politicians).
Julian Shan may have had his cherry busted.
But who is going to print that.
Family Name Shan... isn't that Mountain?
Jiuliang is his Christian name.
Full name Jiuliang Hoevovitch Shan.
Yeah!...Let this be a lesson to the CRIMINAL!!
just when you least expect it
Hang a banker a week until the others improve.
David Livingstone - former Mayor of London.
"Investors Capture Head"
OK great. I hope they impaled it on a pike in public for all to see as a lesson..
Dear Dumb Ass Westerners,
Take note from these people who have 'conscience' and feel what is right. They are not blinded by the pathetic rules which create the two tier legal system which perpetuates througout all western countries.
The Directors of companies shuttle their wealth into their wives or childrens names or to overseas juridictions and then cry poor to the court.
I say rip the pricks out of their guilded castes and drag them thru the street. THey wont be able to hide behind their lawayers (read 'Liars') and will be held accountable for the 'truth' of the crimes.
FTF
Death by a thousand cuts!! What a way to die. Mandarin Style I think they call it.
Those sick fucks would walk around in crazy costumes like a mullah or Islamic Cleric. Sick Fucks.
Get out the guillotine vote.
Zion is a scheme, not an ethnicity.
Technically an Ass Worshipper is a kind of fetish, right?
- You like seeing young girls in short shorts?
- You like seeing cheerleader type girls?
- Maybe the closer you get to the ass the more frentetic you get?
- Is there something special when a woman is lying down and you can see her butt?
- Is there something special when you see a woman crouching in short pants, soft pants, bare leggs?
lol
that was stupid.
"Fanya is a forum for trading minor metals like indium and bismuth"
What metals? That is a good one. I would know about this if a market existed and so would most of you. More bullshit.
Great news. I can't wait for the day that they get Jamie Dimon and Lloyd Blankfein.
Don't forget everything is subject to change with the right stimuli and forces at hand ? and just what do you think will happen when all the freebies are not avaiable ? and that day will come, perhaps sooner than many realize.
The Obama games will not play out as the control freaks think they will. Control freaks, sociopaths, and psychopaths always over play their hands and believe their own bullshit ! That too has happened and simply has not come to fruition quite yet. It will though.
Mass resignations from the CFTC soon to follow.
Chinese Corzine?
Zion is a scheme, not an ethnicity.
If you don't have indium or bismuth in your hand, you don't own it.
Time to go long Pepto Bismol then!
Im disappointed. Why didn't they rip him to shreds and hang him? Come on China
The first try is law & order. When the justice system fails, the lynchings begin.
In China that is.
Most Western whitey's are too docile. Like Hindu cows.
isnt that defined as domestic terrorism in this country?
what is is just what is.
messiness is nobody's friend.
eurasia has to go.
nothing to see here, move on...
Crowd-Fund Corzine being gutted and quartered!.....Easy money for the right person and no guilty conscience to worry about...
Monday kaboom!!!!!!
So the hangings begin. Better jump before get hanged.
So who was he fuckin'?
Jiuliang Shan was in a Hotel, he is the Head of the Exchange or Metals Exchange... who was he fuckin'? I mean was it a hot young woman he kept as a side thing while married to someone else.
Normally that is how this works.
Is China different from the Hyper-Sensitive, Hyper-Judgmental USA... in that they don't print or smear people if they can afford to keep a mistress??
What are the odds we won't hear anything about this on CNBS tomorrow. Is there a Chinese WMP that allows me to make that bet?
You know it's messed up when you can't say M'rika. Dang China, you are kicking our @$$ every which way but loose.
I love this kind of shit. It’s my favorite thing about China, true reality, much better that American reality T.V.
Nonetheless, I still prefer the idea of catapulting offenders into the quotes on the big board of the SCHOMP.
There are going to be a lot of angry farmers and banana vendors. Just remember friends, the banksters are your enemy. Not the middlemen exchanges.
BS. The exchanges are dirty too.
But, but, but PIMPco's Crescenzi tells me to "Take advantage of this weakness."
http://finance.yahoo.com/news/mohamed-el-erian-selling-not-232146780.html#
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...
(looking towards the Hamptons)
Say, that gives me an idea.
This has been happening, in America, for years, and not one person has done a thing. Oh, one muslim tried to blow upn the Fed but, other than that, nothing. Fluoridation?
Asinine Preys still handling Predators with kids' gloves elsewhere.
http://www.zerohedge.com/news/2014-04-21/furious-chinese-rioters-beat-co...
Lets do that with Fred Goodwin. Even if he's released after, it'll give him something to think about.
Since the cops let him go, now the mobs need to arrest all the cops. Then hang them. Then catch the perp again, and hang him too.
"And they turned him loose without charges as soon as the yokels were gone."
How do we know they were yokels and not state actors playing a role?
Everything in China is stage managed, right down to little girls singing at the olympics. Why should this be any different?
Nothing will change util the Zionist FED banksters, the zionist democrat media, and the Zionist FED's political puppets are dangling from lightpoles.....so in America, nothing will change.
Was Chilton or Blankfein or Levitt or Corzine visiting?
the worst thing the local PD could do is to release the guy---It means to the average Chinese that the gov't and the crooks are in cahoots ----will end badly for the "party hacks"
That angry one in the front gets me wet.
While in the midst of erotic abandon we'll discuss the finer points of communist dogma vs. capitolist market theory.