Key ally turns adversarial! Xiamen SOE files arbitration against Maikou; 'China’s Copper King' crown begins to slip

The announcement states that, in 2022, impacted by the pandemic, Xi’an Maikou Metal International Group Co., Ltd. (hereinafter referred to as 'Maikou Group') and Shenzhen Maikou Metal Co., Ltd. (hereinafter referred to as 'Shenzhen Maikou') experienced deteriorating business conditions, resulting in failure to fulfill certain contractual obligations toward Xiamen Xinda on schedule. Xiamen Xinda stated that it has suspended all business dealings with the aforementioned entities and has pursued resolution of outstanding receivables through on-site collection efforts, negotiation talks, and enhanced credit support measures—yet Maikou Group and Shenzhen Maikou have still failed to make the requisite payments or deliver the contracted goods. Maikou Group is a formidable enterprise. According to the Shaanxi Provincial Entrepreneurs Association’s 2022 Shaanxi Top 100 Enterprises List, Xi’an Maikou Metal International Group Co., Ltd. ranked fifth with RMB 159.878 billion in revenue for 2021, and topped the 2022 Shaanxi Top 50 Private Enterprises list—once again surpassing Dongling Group (renowned as 'the First Village of Western China') and high-profile company LONGi. Maikou Group is actively addressing its temporary difficulties and fully committed to resolving uncertainties arising from liquidity constraints. Months ago, He Jinbi—the head of this top-ranked private enterprise in Shaanxi Province, widely known as 'China’s Copper King'—rarely spoke publicly. His remarks unveiled both the underlying circumstances and the scale of his RMB 100-billion commodities empire to the public. 01 Former Allies According to the announcement, the specific facts are as follows: Xiamen Xinda and its wholly owned subsidiary Shanghai Xinda Nuo Co., Ltd. (hereinafter 'Shanghai Xinda Nuo') successively entered into several 'Electrolytic Copper Purchase Contracts', 'Electrolytic Copper Sales Contracts', and 'Agency Import Agreements' with Maikou Group and Shenzhen Maikou, stipulating mutual performance of electrolytic copper procurement, sales, and related matters under the contracts. To guarantee performance of the above contracts, Maikou Group and He Jinbi each issued a 'Guarantee Letter', voluntarily assuming joint and several liability guarantees up to RMB 2.8 billion and RMB 2.0 billion respectively for a series of contracts signed between Xiamen Xinda/Shanghai Xinda Nuo and Maikou Group/Shenzhen Maikou during two periods: March 31, 2021–March 31, 2022, and March 31, 2022–March 31, 2023, concerning electrolytic copper and other procurement/sales activities. Xiamen Xinda stated that, following execution of the contracts, it and Shanghai Xinda Nuo duly performed their contractual obligations, whereas Maikou Group and Shenzhen Maikou failed to fulfill theirs on schedule. In light of the foregoing, to safeguard its legitimate rights and interests, Xiamen Xinda and Shanghai Xinda Nuo jointly filed arbitration applications before the Xiamen Arbitration Commission, naming Maikou Group, Shenzhen Maikou, and He Jinbi as respondents—and have lawfully applied for property preservation measures. Based on differing arbitration respondents, Xiamen Xinda initiated four separate arbitration cases, involving amounts of RMB 106.5511 million, RMB 107.1834 million, RMB 108.7404 million, and RMB 762.8707 million respectively. This arbitration matter has not yet proceeded to hearing. Xiamen Xinda stated that it will continue communicating with relevant parties to jointly explore an integrated debt resolution plan and protect its legitimate rights and interests. Meanwhile, Xiamen Xinda noted that the subsequent impact of this arbitration will depend on evidentiary submissions and procedural developments in the arbitration proceedings. Business registration records indicate that Shenzhen Maikou is a wholly owned subsidiary of Maikou Group, whose founder is He Jinbi. Maikou Group was established on June 8, 1993, with registered capital of RMB 1.3672 billion. Its shareholders include Maikou Investment Holding Co., Ltd., Xi’an Yingtong Investment Co., Ltd., Zhang Chunling, and SAIF III MAURITIUS (CHINA INVESTMENTS) LIMITED.

The 'fall' of 'China’s Copper King'...

At that time, domestic copper processing was still in its infancy. As noted in the article 'Analysis of the Development History and Influence of China’s Copper Futures', copper producers were small-scale enterprises, with annual electrolytic copper output per company generally below 100,000 tons. Yet demand for infrastructure construction surged explosively at the same time, while non-ferrous metals remained heavily import-dependent—creating a pronounced supply-demand gap and revealing promising commercial opportunities. Seizing this opening, He Jinbi began with copper wire and refined copper trading, rapidly capturing market share. Among various metals, copper stands out for its excellent electrical conductivity, durability, and corrosion resistance—making it a star commodity in global markets. However, copper prices fluctuate significantly with supply-demand dynamics and are deeply tied to macroeconomic cycles, effectively serving as a barometer of the broader economy. He Jinbi recognized this core industry challenge. He once publicly remarked: 'Commodity prices remain volatile until the transaction is finalized; if risk hedging is not conducted in advance, losses from price declines cannot be transferred.' Confronted with frequent commodity price volatility, He Jinbi opted to employ futures for hedging. Thus, at the end of the 1990s, brimming with boldness and passion, he ventured to Hong Kong—the international financial hub—and Shanghai—a city where finance was rapidly ascending—to enter the futures trading arena. The Adventurer in the Futures Market For producers or traders, futures serve to hedge against price fluctuations; for investors, however, futures represent a business opportunity—profits can be earned by accurately anticipating price differentials. In the futures market, He Jinbi was never merely a trader. His repeated precise forecasts of copper prices marked the beginning of his commercial legend. His large-scale entry occurred in 2003, when He Jinbi and his wife Zhang Chunling acquired Shaanxi Wukuang Futures Brokerage Co., Ltd., renaming it Maikou Futures Brokerage Co., Ltd., later restructured as Maikou Futures Co., Ltd. (hereinafter 'Maikou Futures'). By then, China had joined the WTO, and the copper market entered its longest and strongest bull phase in history. He Jinbi’s business empire thus entered a critical growth period. Of course, timing accounts for only part of success—foresight matters equally. He Jinbi’s ascension to the title of 'China’s Copper King' owes largely to early strategic decisions. When most producers and traders anticipated imminent price declines—even the authoritative State Reserves Bureau doubted further copper price increases—He Jinbi remained bullish, reaping enormous profits. He Jinbi once stated publicly: 'Between 2005 and 2007, commodity futures prices rose continuously—from $3,000 to $8,800 per ton. This was the fastest-growth period for Maikou Group; we may have earned over RMB 2 billion in a single year.' Futures trading abounds with uncertainty and risk; catching the right wave remains rare. He Jinbi was among that select few. Yet success was no accident—he consistently made seemingly unexpected decisions at pivotal moments. In 2011, He Jinbi chose to return to Xi’an. He believed that Beijing, Shanghai, and Guangzhou had become saturated 'red oceans,' whereas the financial and trading sectors in western China remained largely untapped. His first major initiative upon returning was investing in the construction of the 'China Western Bulk Commodities Trading Center' in the Xi’an International Trade Port Zone. Reports indicate the project involved a total investment of RMB 3 billion, with the trading market complex covering a gross floor area of 290,000 square meters.

Chinese Copper Trader He Jinbi Sentenced to Life Over Maike Fraud

16 hours ago

Chinese copper trader He Jinbi received a life sentence for fraud linked to Maike Metals, exposing banks to over $1 billion in losses. The case marks a significant disruption in China's copper import supply chain following the company's bankruptcy.

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Chinese Copper Trader He Jinbi Sentenced to Life Over Maike Fraud

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