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Shenzhen authorities issue warning over illegal fundraising

By Zheng Caixiong in?Guangzhou | chinadaily.com.cn | Updated: 2025-07-08 19:44
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Financial regulators in Shenzhen, South China's Guangdong province, have urged residents to be alert to illegal fundraising activities that amount to fraud.

As the popularity of the digital currency market continues to grow, some illegal institutions are now using concepts such as "financial innovation" and "digital assets" as packaging. In the process, they are seeking to take advantage of the public's unfamiliarity with emerging financial products to illegally generate funds through the issuance of "virtual currency" and "virtual assets", according to a statement released by authorities in Shenzhen on Monday.

Local authorities said that some institutions have not obtained licenses from the country's financial regulatory authorities and do not have the qualifications required for public fundraising.

Common techniques include fabricating investment projects, exaggerating profit prospects and related false advertising, using high returns as bait to commit fraud, said authorities.

According to China's relevant regulations on preventing and dealing with illegal fundraising, the country comprehensively prohibits all types of illegal fundraising activities, and participants must bear their own property losses caused by any illegal activity. Such events include various kinds of illegal and criminal activities, including illegal fundraising, gambling, fraud, pyramid schemes and money laundering, that pose a serious threat to the safety of public property, the statement said.

As a result, financial authorities in Shenzhen have called on residents to form a rational investment concept, not to believe unrealistic profit promises, consciously resist the temptation of high-risk investment, enhance their ability to identify new financial scams and jointly maintain a healthy and orderly financial environment in the city, which is a noted innovation, science and technology hub.

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