Crackdown on illegal fundraising

Source: Xinhua | 2018-02-28

CHINA will tighten its crackdown on illegal fundraising to fend off financial risks in 2018, according to an inter-agency anti-illegal fundraising meeting.

China will strengthen the supervision mechanism for illegal fundraising, hold local government officials accountable and improve the legal system and public education this year.

Rising illegal fundraising has been curbed thanks to efforts in high-profile cases.

China saw 5,197 illegal fundraising cases in 2016, involving 251.1 billion yuan (US$39.8 billion), down 14.48 percent and 0.11 percent year on year, respectively, official data showed.

Despite the progress, eastern coastal areas, central and western regions with large populations are still vulnerable to fraud.

Internet finance has grown as investors seek higher returns than bank deposits while small businesses secure funds through online brokers. But risks have piled up as regulations cannot keep up with the pace of development.