China faces protests after investment scheme collapses

MarketsAssociated Press

Chinese authorities are struggling to quell protests following the collapse of an investment scheme police say took as much as $4.7 billion from millions of depositors.

The implosion of Qianbao.com adds to a string of failed Chinese financial ventures blamed on fraud or mismanagement that have prompted protests and complaints of official indifference to the suffering of small investors.

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On Monday, hundreds of people marched in freezing weather in the eastern city of Nanjing shouting for the government to take action. A video shot by a demonstrator showed police carrying some people away.

The Xinhua News Agency said in a report on Qianbao, "Don't organize and don't participate in illegal activities."

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