As originally reported here on SM Report, concern about risk associated with irregular operations at the Fanya Metal Exchange arose last week following a report published on the Chinese Securities Regulatory Department's official website.
The report was quickly deleted from the official government website and summaries of the report published by local media were subsequently edited to remove any reference to the Fanya Metal Exchange. Questions about what exactly is happening at the exchange, however, have begun to swirl.
Is the Fanya Metal Exchange, which has become a topic of debate amongst participants in the industry since it began purchasing large stocks of indium in 2013, under investigation by authorities in China?
And will the exchange be able to continue operating, as it currently claims to, by selling millions of dollars worth of minor metals to individual investors each week? (Note: Based on current market prices, Fanya's published purchases, last week alone, totalled more than US$ 50 million).
As always seems the case with the Fanya Metal Exchange, there are more questions than answers.
While there has obviously been censorship of the original report, discussions about its contents have continued on a number of Chinese business and investment websites, forcing Fanya to respond.