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UPDATE 2-China securities watchdog warns of 'foreign' investor scams

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Recasts, changes headline) SHANGHAI, March 2 (Reuters) - China's securities regulator on Thursday warned investors against fund-raising scams purporting to be from foreign asset management firms, underscoring reputational risks that global financial institutions face in the country.


Some fraudsters, disguised as qualified foreign institutional investors (QFII), recently 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, urging investors to report any scams to the police. The inbound QFII scheme allows foreign institutions to invest in China, but QFIIs don't operate in the country, CSRC added.
(Reporting by Shanghai newsroom; Editing by Christopher Cushing and Muralikumar Anantharaman)

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