The
exchange said on Wednesday it aims to buy back investors’ metal with 5 billion yuan ($800 million) provided by producers, some of whom said they do not yet have specific plans to take part in the buyback scheme.
It is unclear how the figure of 5 billion yuan has been arrived at, and how it relates to the amount of money invested, the redemptions that have been asked for, or the volumes of metal held.
“Fanya says it has 3,629 tonnes of indium in warehouses, held for investors. Assuming they are buying this indium at Fanya’s prices, 5 billion yuan will buy just over 675 tonnes,” one large minor metals trader said.
“What about the other 2,954 tonnes?” the trader asked.
It is unclear exactly how the planned buyback would work.
Exchange officials and producers said variously it would be through the Fanrong platform Fanya launched...
