Chinese speculators stage rare protest over 'fraud' by Fanya metals exchange

Speculators who claim to have lost money on risky investments mounted a rare protest in Beijing yesterday, an uncommon sight in the capital despite plunging prices on the mainland's stock exchanges.

Several dozen investors - surrounded by police - stood outside the office of China's top anti-graft agency complaining they were tricked by the Fanya metals exchange.

Many mainland financial institutions offer high return investment schemes based on increasing asset prices, but slowing growth has heightened fears that such products could go bust, potentially sparking social unrest.

The Fanya exchange in Yunnan offered investors a bet on increased metal prices, promising some double-digit returns on their investments.

But with commodities plunging worldwide, metals prices have fallen this year and some of the exchange's reported 220,000 investors say that they are not able to withdraw funds as promised.

The problems date back to mid-April, reports said, predating the mainland stock market plunges that began in June.

The mainland's main financial institutions are government-run, and many Chinese expect the state to step in when the investments they have chosen go bad.