Chinese Exchange Fanya Strives To Open Door To Minor Metal Investing

May 09, 2014

 

Some Exchange Statistics

To quote some of Zhang's other statistics for the exchange:

  • "Trading volume and Turnover: nearly 160,000 tons, with turnover above $32.7 billion; Memberships: over 100,000 members (producers, traders, consumers, institute investors and personal investors)"
  • "Clients Assets: $4.12 billion;"
  • "Sales amount for rare metal enterprises: $3.2 billion"

 

In addition, we learned that the exchange is adding some 500 new clients each day, and "$320 million of new clients assets per month," with considerable interest from the Chinese "Dama" or individual investor.

 

The Exchange's Three Stated Raisons D'Être

  1. Perhaps one of Zhang's most illuminating slides was the one that provided three raisons d'être for the exchanges existence: Global rare metal industry needs much more open data and a platform integrating information flow, cash flow and logistics flow.
  2. The global rare metal upstream and downstream industries need better sales channels, more equal pricing forming system and more comprehensive financial services.
  3. Global capital market needs new investment targets of being modern and representing high technology development

 

Zhang was particularly keen to emphasize the last of these points, noting later in her presentation that: "Rare metals become important investment products which can keep value or anti-inflate in the era of electronic finished products which are made from rare metals as the vital functional raw material."

The exchange, therefore, provides not only institutions but individual investors a handy way to invest in various minor metals. They can, if they want, even take them home and put under their beds. As Zhang so rightly pointed out: "With the real estate industry market going down, we need to search for more and better investment categories in 2014."

 

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