The Fanya Metal Exchange default in China has caused out-of-pocket investors to hit the streets in protest. Though this is not the first time defaults on so-called wealth management products and similar investments, marketed by banks but often backed by high-risk or speculative projects, ﻿have sparked protests in China; w﻿hat makes this more unusual is that for once the investors are protesting in Beijing and Shanghai, in front of government offices, including the China Securities Regulatory Commission. The "Daily Golden Jewel" investment offered by the Fanya Metal Exchange had implied it was risk-free with government-backing, however, when it experienced liquidity problems earlier this year, the funds were frozen, leaving a reported $6.4bn owed to investors. In an interview with Reuters, one investor who lost money said he would be willing to pay back his investor's deposit if the exchange could guarantee him against losses from its own funds.
The Fanya Metal Exchange default in China has caused out-of-pocket investors to hit the streets in protest. Though this is not the first time defaults on so-called wealth management products and similar investments, marketed by banks but often backed by high-risk or speculative projects, ﻿have sparked protests in China; w﻿hat makes this more unusual is that for once the investors are protesting in Beijing and Shanghai, in front of government offices, including the China Securities Regulatory Commission. The "Daily Golden Jewel" investment offered by the Fanya Metal Exchange had implied it was risk-free with government-backing, however, when it experienced liquidity problems earlier this year, the funds were frozen, leaving a reported $6.4bn owed to investors. "Our losses are not only in money but also in our trust in our government", said one investor.