Il­le­gal fundrais­ing crack­down to step up

China Daily (Canada) - - LIFE - By JIANG XUEQING jiangx­ue­qing@ chi­nadaily.com.cn

China will in­ten­sify its crack­down on il­le­gal fundrais­ing by en­hanc­ing reg­u­la­tion, push­ing for­ward the construction of mon­i­tor­ing and alert sys­tems by lo­cal gov­ern­ments, and strength­en­ing in­spec­tion of il­le­gal fundrais­ing ac­tiv­i­ties.

Yang Yuzhu, di­rec­tor of the of­fice of the in­ter­a­gency task force lead­ing the crack­down on il­le­gal fundrais­ing, said on Wed­nes­day it will carry out com­pre­hen­sive in­spec­tions on how well lo­cal gov­ern­ments have im­ple­mented the State Coun­cil’s guide­lines on fur­ther im­prov­ing ef­forts to pre­vent and deal with il­le­gal fundrais­ing.

“The in­ter­a­gency task force will urge direc­tors and reg­u­la­tors of rel­e­vant sec­tors to ac­cel­er­ate the im­prove­ment of reg­u­la­tory mea­sures and step up ev­ery­day su­per­vi­sion and risk con­trol, es­pe­cially in sev­eral key ar­eas where il­le­gal fundrais­ing cases oc­cur most fre­quently, in­clud­ing peer-to-peer lend­ing and crowd­fund­ing,” he said.

In 2015, the num­ber of newly oc­curred il­le­gal fundrais­ing cases in China in­creased by 71 per­cent yearon-year. Dur­ing the same pe­riod, the amount of money in­volved rose 57 per­cent and the num­ber of peo­ple in­volved in­creased by 120 per­cent. All th­ese fig­ures hit a historic record.

A grow­ing num­ber of crim­i­nals pre­tended to cater to the pub­licde­mand­for pre­serv­ing and in­creas­ing the value of their as­sets. In­com­plete statistics show that il­le­gal fundrais­ing cases dis­guised as var­i­ous forms of in­vest­ment and wealth man­age­ment ac­counted for more than 30 per­cent of the new­cases.

Zhang Xiao­jin, deputy di­rec­tor of the in­ves­ti­ga­tion and­su­per­vi­sion­de­part­mentof the Supreme Peo­ple’s Procu­ra­torate, said: “Il­le­gal fundrais­ing is usu­ally un­der the cover of so-called fi­nan­cial in­no­va­tion. Procu­ra­tors have to think fur­ther and do more research on how to pre­cisely grasp the bound­aries of il­le­gal and le­gal ac­tiv­i­ties to keep a bal­ance be­tween com­bat­ing crimes and pro­tect­ing in­no­va­tion.”

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