China’s Fanya Metals Exchange founder Shan Jiuliang was abducted and dragged to the nearest police station by angry investors for freezing funds.
Last month, the company halted payments on investment products, triggering protests from investors.
When Jiuliang attempted to check out from a luxury hotel in Shanghai, which was surrounded by the investors, he was manhandled into a car and taken to the police station, FT reported. He was taken into custody for investigation, but was released later without charge.
With offices in Shanghai and a financing branch in Kunming, Fanya Metals Exchange had raised funds from various companies to buy minor metals such as Indium and Bismuth to support financial products by offering high interest and highly liquid products. It currently has large scale of clients’ assets under management.
Recently the investment schemes effectively collapsed with fall in metal prices. The company also ran into liquidity troubles in spring and is contemplating sale of metals, which includes some minor metals used in tech and military operations, reports The Independent.
This comes at a time when the Chinese economy is in the midst of a slowdown.