The China Securities Regulatory Commission (CSRC) is to
cooperate with local governments to crack down on frauds selling
bogus stocks and securities.
Illegal institutions and individuals had been fabricating false
information to sell stocks "to be issued overseas" and attracting
buyers with promises of high returns, said a CSRC statement on
Thursday.
Cases had been reported around the country and were spreading in
some regions, with many victims being retired people or laid-off
workers, the most vulnerable groups.
Enterprises illegally issuing stocks were mainly from central
and west China, while institutions illegally operating securities
businesses were mainly in coastal regions.
The public security departments and the securities regulatory
institutions in November decided to crack down on illegal
securities businesses.
Local governments, including Beijing and Shanghai, have set up
special working group to crack down such cases, according to the
CSRC.
(Xinhua News Agency December 22, 2006)