Inducing Investors to Purchase Suspended Bonds for Profit Scheme

PortfolioAlert · 2026-03-13T07:17:38+00:00

In September 2025, multiple investors filed reports with Shanghai police, claiming that bonds purchased through online live streaming broadcasts could not be redeemed. Police discovered that criminal gangs exploited investors' lack of understanding about bonds by luring them to purchase long-suspended bonds at low prices. Criminal measures have been taken against the suspects involved.

PortfolioAlert

2026-03-13 07:17:38

Abstract generation in progress

In September 2025, multiple investors reported to the Shanghai police that the bonds they were recommended to buy through online live broadcasts could neither be redeemed nor traded due to the lack of trading counterparts, raising suspicions of fraud. The police investigation revealed that these bonds were all long-term suspended bonds.
The criminal gang’s method involved purchasing suspended bonds with a face value of 100 yuan from private equity and other institutions at around 10 yuan, exploiting investors’ unfamiliarity with bond transactions. They spread the false idea in live broadcasts that the trading price of 80 yuan during suspension was the market price, then lured investors to take over at around 50 yuan, falsely claiming that they could profit from the price difference once trading resumed. Investors mistakenly believed they were “picking up a bargain,” but in reality faced multiple risks including non-repayment.
Currently, the suspects have been taken into criminal detention by the police on suspicion of illegal business operations.

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