FANYA: Concerns about further metal auctions re-emerge after second Fanya trial ends

Concerns about a possible round of auction for indium stocks held by the defunct Fanya Metal Exchange in the coming months re-emerged among Chinese market participants after the Southwest China’s Kunming Superior People’s Court announced the second trial result in an open court on Friday July 26, Chinese state news agency Xinhua reported.

Kunming Superior People’s Court decided to uphold the earlier judgement made by Kunming Intermediate People’s Court except reducing the term of imprisonment for one of the defendants to six years and six months from seven years. On March 22, Kunming Intermediate People’s Court announced its decision to fine the Fanya Metal Exchange 1 billion yuan ($145.3 million) for violating national law and illegally raising funds, leaving the public worried about how funds will be raised to repay investors and whether there would be a second auction for a total of 34.64 tonnes of indium stocks in Fanya. In the first trial, Shan Jiuliang, the former chairman and president of Fanya, was sentenced to 18 years’ imprisonment for embezzlement. Shan also had 50 million yuan of his personal property confiscated and was fined 500,000 yuan. In addition, three other defendant companies and 21 individuals have been fined. In early January, Fanya had...

Published

Amy Lv

July 29, 2019

17:20 GMT

Shanghai, London