As demand for soybeans, copper and other raw materials surged, investors flocked to Huaxia Commodities Spot Exchange Co (華夏商品現貨交易所), plunging into the risky world of commodities in search of better profits amid slumping Chinese stock prices.
But now Huaxia’s boom has collapsed amid accusations its founder fled to the US last week with up to US$25 million in customers’ money. Police have launched a manhunt for him and say several employees have been detained. Investors, including farmers and entrepreneurs, besieged Huaxia’s Beijing headquarters last weekend, demanding their money.
The collapse comes at a time when China’s stock market is near 16-month lows and investor confidence is weak.
Police said they are “making every effort” to find Huaxia founder Guo Yuanfeng (郭遠峰), wanted for unspecified “economic crimes.”
A police statement said several employees were detained but gave no details. Police spokesmen declined to elaborate.
Driven by a boom that is expected to see China’s economy grow by at least 9 percent this year, commodities trading grew 142 percent to 35 trillion yuan (US$5.1 trillion) in the first half of the year, compared with the same period last year, the China Futures Association said.
Small traders are allowed under regulations issued last year, but Huaxia might have been engaged in bigger, longer-term trading than its status allowed, the financial newspaper 21st Century Business Herald said.
The Chinese newspaper Legal Daily, citing unidentified sources, said 170 million yuan in investors’ money was missing.
The police statement said Guo’s whereabouts were unknown. The 21st Century Business Herald said he flew to Los Angeles last Tuesday.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
RSS