The head of the China Banking and Insurance Regulatory Commission (CBIRC) has warned investors of the perils of illicit financial activities that promise lucrative rewards.
Speaking at the 2018 Lujiazui Forum in Shanghai, CBIRC head and party chair of the Chinese central bank Guo Shuqing took the opportunity to warn the general public of financial risk in relation to suspect investment products.
“Yields ahead of 6% should be questioned, those ahead of 8% are very dangerous, and those above 10% entail preparation for full loss of principal,” said Guo.
Guo’s remarks at the forum follow a similar warning made at China’s Two Sessions legislative meeting in March, where he said that “financial knowledge must become widespread, and the average person must increase their awareness of financial risk identification.”
“Any claims of ‘guaranteed principal and high returns’ must be reported,” said Guo. “Guaranteed principals cannot possibly provide high returns, and this is fraud which must be reported to financial regulatory departments and local financial offices.”