Fanya suspends Fanrong payments; investors occupy warehouse

The Fanya Metal Exchange has suspended daily payments to investors who had transferred their holdings to Fanrong, and will also not be signing Fanya’s 24-month due payment contracts or Fanrong’s 18-month due payment contracts with customers.

Investors were informed on the steps via a notice on Fanya’s trading software platform on Wednesday morning, which said the move would apply throughout an equity restructuring period that it was undergoing.
“It’s very strange. Fanya signed the equity restructuring contract on July 10, announced it had stopped the business of the Ri Jin Bao [main Fanya exchange] on July 12, and then recommended us to switch to Fanrong, now, one month later, it has announced the equity restructuring and Fanrong investors also cannot get any money!” a Shanghai-based investor said.

“[It now appears that] when we...

Published

Rena Gu

August 05, 2015

11:56 GMT

Shanghai