The failure of a fundraising scheme by Xinqi Asset that affected more than 5,000 mainlanders has provoked ire among investors,
amid growing suspicions about the legality of the businesses and the government’s role in the company’s development.
Dozens of Shanghai residents gathered at the police station in Pudong yesterday to report the case as they accused Shaanxi province-based Xinqi of fraudulently raising capital to fund property projects.
Xinqi, founded by Jia Huanqi, who is also chairman of the asset management firm, failed to pay back investors principals and interest earlier this week.
Xinqi netted multi-billion yuan from investors across the nation in the past year by promising guaranteed returns of more than 13 per cent a year.
But victims are grumbling about a group of government officials and celebrities including Chinese Premier Li Keqiang for their roles in helping promote the company and its wealth management products.