Let’s talk about the most shameless “new deal” on illegal fundraising that China has recently introduced. Over the years, China’s financial innovation has produced more than 5,000 P2P lending companies, the vast majority of which have gone out with tragic mines, while many of these companies in trouble have been defined as illegal fund raising. The problem of the tens of millions of financial refugees generated by the thunderstorms has remained unresolved until now.
On February 10, the Chinese State Council promulgated the Regulations on Prevention and Disposal of Illegal Fund Raising (the “Regulations”), signed by Premier Li Keqiang. The Regulations will come into effect on May 1, 2021, and the previously issued Measures for the Suppression of Illegal Financial Institutions and Illegal Financial Business Activities will be repealed.
Rather than being controversial, it should be scolded. Many people scolded the Chinese Communist government for its shamelessness and lack of limits in harvesting the common people.
This regulation has a total of 5 chapters and 40 articles, these 5 chapters are: general provisions, prevention, disposal, legal responsibility and by-laws. Article 2 of the regulation defines illegal fund-raising as the act of absorbing funds from unspecified objects by promising to repay capital and interest or giving other investment returns without the permission of the financial management department of the State Council according to law or in violation of the national financial management regulations.
Article 25, paragraph 1 of the regulations, illegal fund-raising, illegal fund-raising assistance should be to the participants of the fund-raising funds. The refund process should be subject to the supervision of the lead department for the disposal of illegal fund-raising.
In fact, it can be understood that the state set up the relevant departments to help fund-raising participants to get their money back, but does not guarantee that they can get it all back, for the losses suffered by the participants due to their participation in illegal fund-raising, should not be looking for the disposal department, but through other means (criminal, civil) to solve. This is obviously an argument of shirking responsibility.
In the past two years, there have been many cases of P2P thunderstorms in China, many of which started in the name of financial innovation and operated in the name of Internet finance, and many of them were legally approved by the government before they started to operate, and some P2P platforms even had government backgrounds and shares of some officials, such as Pan Asia and Group Loan. In the beginning, all of them were legal and approved by the government. But once the operation is up, these platforms are the actual person in charge through various techniques, and the government conspire to transfer the funds out, the platform in charge and government officials sitting on the land to share the fat, harvesting the leeks of lenders. After the incident, the platform leader ran away, the local government buckled on an illegal fund-raising hat. This is the source of so many so-called illegal fundraising disputes and so many financial refugees in China now.
It is reasonable to say that at this Time, the government and public security departments should come forward to help the victimized lenders to actively recover the funds, to return everyone a justice. But now it is good, Li Keqiang a paper ban, the government and the regulator’s responsibility skimmed clean, a sentence: the loss by the fund-raisers to bear their own. It is shamelessly shirking responsibility. When the initial capital raising, if the platform is illegal should be banned, government departments have an unshirkable regulatory responsibility. Without the existence of illegal fund-raising platforms, there would be no victims of illegal fund-raising. The government’s failure to allow illegal platforms to harm people, after the incident so that those involved in fund-raising their own responsibility, meaning that although the fraudulent platform was approved by us at the beginning, but you are now cheated, the main is your own responsibility. The government can help you to recover a little even if it is good, can not be recovered can not complain about the government, can not find trouble for the government. It can be said that such a shameless face, only the Chinese government regulators can do it.
It is foreseeable that, along with the decline of China’s real economy, there will be more and more of these so-called illegal platforms for fund raising in the future, and all kinds of frauds will also be fancy. Whether it’s the tens of millions of financial refugees from the past or the newly created victims of illegal fund raising, it’s getting harder and harder to recover their funds.
Just like when Family planning was first introduced, the government said, “It’s good to have only one child, the government will take care of the old age”. Now it’s “you can’t rely on the government for retirement”. In such a country, you can only grow an eye for yourself, at all times to be wary of being victimized. Otherwise, there is always a product that makes you a leek.
Recent Comments