Founder of China's Largest Copper Trading House Detained by Police, Sending Shockwaves Through Industry

In a shocking turn of events, executives at one of China's largest copper trading houses have lost contact with the company's founder, He Jinbi, and suspect that he has been detained by the police for questioning, according to sources familiar with the matter. He Jinbi, who founded and built Maike Metals International, China's biggest importer of refined copper, has not been heard from for at least a day, and colleagues have been informed that he was taken away by the police in his home province of Shaanxi. Although the reason for He Jinbi's supposed detention remains unknown, it is speculated that it may be related to the ongoing legal action taken against Maike and Mr He by creditors.

The company, which faced a liquidity crisis in 2022 during China's extended Covid-19 lockdowns, has been struggling to pay for purchases, and its trading activity had largely come to a halt. Maike, once responsible for a quarter of China's copper imports, had a significant impact on the industry, making He Jinbi one of the most powerful players. Since its establishment in 1993, Maike, initially focusing on trading mechanical and electrical products, had later shifted its focus to copper. With He Jinbi's extensive network of friends and business contacts, Maike became a crucial intermediary between international traders and Chinese consumers, satisfying the country's high demand for raw materials during the 2000s commodity supercycle.

He Jinbi's deep connections in the real economy allowed him to make successful bets on the future of the copper market, pioneering China's cash-for-copper trade by leveraging the massive volumes of metal he was shipping and storing in warehouses. However, the company's expansion into China's booming real estate sector in the 2010s proved to be a double-edged sword. Investments in hotels and business centers left empty during China's extended Covid-19 lockdowns contributed to last year's liquidity crisis. In February 2023, Maike filed a request for preliminary restructuring in court to resume trading metal, but its absence from the market has impacted liquidity in China's copper trade.

He Jinbi's legal troubles further intensified when he was sued by ING Groep in Hong Kong for unpaid debt amounting to $147 million. The case involved overdue payments owed by a trading arm of Maike. Despite the mounting challenges, Maike has declined to comment about the case. The disappearance and possible detention of He Jinbi have sent shockwaves throughout the industry, leaving many questioning the future of Maike Metals International and the wider copper trade in China. The investigation into He Jinbi's missing status and the ramifications for the company and the industry as a whole will continue to unfold, as authorities seek answers to this perplexing situation.