By NNN-APP
Beijing : An amount of $ 59.29 million swindled by fake investors and investment projects was recovered during crack down by Chinese police in the first half of the current year.
The Ministry of Public Securities (MPS) in a news release here Monday pointed out that most of the fund-raising projects, which mainly targeted individuals and did not have government approval, lured investors with promises of high profits and quick return on investment.
The police warned the public not to participate in illegal investment projects as they will ultimately lead to fraud and “once participating, citizens have to bear everything they lose,� it said.
“We strongly urge the public to invest in a rational way as opportunities to make high returns often come with high risks,� the Xinhua news agency quoted statement from the ministry of MPS.
“People should be more alert to any investment project that sounds just too good,� it said.
The Chinese police have published a series of cases as warnings to the public, including the case of Yilin Wood Company which swindled more than $ 206 million from about 20,000 people across the country from April 2004 to June last year. The company cheated investors by promising them high returns on sales of woodland.
With fast economic growth, the disposable income of the Chinese people has increased, leading them to explore new ways to invest besides the more conventional stock market and property market.