China will severely punish anyone involved in illegal financing activities, especially targeting underground banks and the stock market, after a series of scandals, state news agency Xinhua reported on Sunday, citing the state prosecutor. “Conscientiously follow the demands of the central government, [and] put the prevention of financial risk in an even more important position,” Xinhua said. “Severely punish the illegal collection of public deposits, fraudulent fundraising and other economic crimes involving the public, as well as money-laundering, underground banks and online pyramid selling,” it added. Prosecutors would also step up a crackdown on securities crime, such as market manipulation, insider trading and fake information releases, and crime in the real estate market such as tax avoidance, Xinhua said.
