Online fraudulent investment schemes and illegal fundraising, which have fleeced Chinese investors of millions of yuan, were recently targeted by the country’s financial regulators.
By
NewsChina
Updated Mar.6
Online fraudulent investment schemes and illegal fundraising, which have fleeced Chinese investors of millions of yuan, were recently targeted by the country’s financial regulators. But the move to combat online swindlers was hampered by local authorities’ lack of clear mandate and inadequate manpower given that the Internet has made widescale scamming easy. In one prominent illegal fundraising case in late 2015, police nabbed 21 employees of Ezubao, one of China’s largest online finance businesses, over an illegal fundraising scheme that netted up to 50 billion yuan (US$8b). Before the arrests, Beijing’s local financial regulator had issued a warning but was rebuffed by the company for “having no right to intervene.” Local financial regulators must urgently brush up their professional skills and they need more legal rights to supervision wayward firms.
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