Around 300 held for illegally seeking profits from securities

A total of 294 people involved in 15 groups suspected of illegally seeking profits after providing securities-related information for investors have been recently detained by Beijing police.

The suspects, all without business licenses, were found to have taken advantage of people's lack of securities expertise and short-term get-rich mentality through sending text messages, telemarketing and other means to provide stock investment advisement for investors, and then illegally making profits by charging software fees and membership services, according to the Beijing Public Security Bureau.

The investigation on the groups started last year after the police received some investors' reports, and at that time, the bureau, along with the city's financial departments, was also conducting a campaign against illegal operation of securities consulting business, the authority said.

The police suggested residents be vigilant when it comes to investment content that boasts of "inside information", "high return" or "steady income and no loss", calling on them to double check whether the information providers have the business license before buying stocks.

"Companies should have the license to carry out securities investment consulting business," the bureau said. "Those providing the services without the license will not only damage legitimate rights and interests of investors, but also disrupt the order of the securities investment market."

"Investors should enhance legal awareness to boycott the unqualified business operators," it added, calling for them to report to police if they find violations or crimes.