The Kunming, China-based bourse was initially a boon to the domestic market, providing another outlet for producers to sell their material, and giving a group of new investors a step into the often-complicated financial markets with its apparently simple Rin Jin Bao product.
The promise of a 14% return with minimal risk had investors flocking to the exchange, with some 220,000 investors registered to use it, Metal Bulletin was told
However, at the end of 2014 some investors became wary as metal stocks continued to pile up. As sentiment soured, the exchange found itself exposed to metals prices that were continuously falling, and being accused of failing to pay
suppliers in January.
Despite attempts by Fanya to woo more investors with its proposed ‘offshore board’ and online financing tool, money continued to desert the exchange throughout the first half of the year; then in July...