Inside China Today

Illegal fund-raising continues to cause crisis

Suppression by armed police had temporarily sedated a mass protest in Jishou City in the western Hunan province. However, the social crisis behind the large-scale protest triggered by illegal fund raising has not been dissolved. Local government had originally promised to solve the issue within three months. On September 7th, another circular was issued by the local authorities regarding companies suspected of involvement in illegal fund-raising, which sparked heated debate over the Internet by commoners who believe the government only knows how to deceive its people.

A local resident, Mr. Li told reporters the majority of the public servants from the West Hunan province (Xiangxi) participated in the investment with the most number of participants nationwide and with the highest yield promised.

It is learnt that the local government proclaimed to solve the issue within three months by lowering those of the ultra-high interest rates and to dissolve their contract, also by digesting 30% of profits spread out in a period of five years with no interruptions.

Mr. Li said the Government also appeased the public by promising to pay back principle investments within three months, which made many people feel assured and secured. He said it would be disastrous if three months later, investors would not be able to get back their principle investment, which could result in larger-scale unrest throughout the entire western Hunan Province.

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