China securities watchdog warns of scams from fake foreign investors

CHINA’S securities regulator on Thursday (Mar 2) warned against scams from fake foreign investors raising money illegally in the country, underscoring reputational risks global financial institutions face in the country.

Recently, some fraudsters, disguised as qualified foreign institutional investors (QFII), sold financial products, recommended stocks, and traded securities illegitimately, the China Securities Regulatory Commission (CSRC) said in a statement, without naming any brands.

“These are illegal behaviours designed to win investors’ trust with the promise of high returns,” the CSRC said, cautioning investors to report to the police once the scams are spotted.

The inbound QFII scheme allows foreign institutions to invest in China, but QFIIs don’t operate in the country, CSRC added. REUTERS