Author: China National News

Posted:  Monday, February 6th, 2017

 

 

After a series of scandals, China’s state prosecutor has said that the country would severely punish people involved in illegal financing activities.

With the target being underground banks and the stock market, state news agency Xinhua said, “Conscientiously follow the demands of the central government, put the prevention of financial risk in an even more important position.”

The report added, “[China will] severely punish the illegal collection of public deposits, fraudulent fund-raising and other economic crimes involving the public, as well as money-laundering, underground banks and online pyramid selling.”

According to the agency, prosecutors will also step up a crackdown on securities crime, such as market manipulation, insider trading and fake information releases, and crime in the real estate market like tax avoidance.”

China’s decision comes after several recent scandals shook the country, the report pointed out.

These included one of the biggest alleged online fraud, which was a nearly 60 billion yuan ($11.4 billion) case involving online peer-to-peer lender Ezubao.

Further, a Chinese hedge fund manager, Xu Xiang, was jailed for five and a half years last month in a court in Shandong, for stock market manipulation.

The prosecutors have not revealed the exact nature of the punishments that would be part of the renewed crackdown.

 

Read more: http://www.chinanationalnews.com/index.php/sid/251484197