Beijing court gives capital residents financial advice

Judges from Beijing No 2 Intermediate People's Court visited a community in the capital's Fengtai district on Wednesday, to warn residents about investment risks and share with them their experiences hearing financial disputes.

Between January 2012 and June this year, the court accepted 123 disputes relating to investments and finance, 60 percent of which involved illegal financial institutes and investment consulting companies.

"Many residents have suffered economic losses due to their blind trust of some funds, stocks and foreign exchange investments, that they were introduced to by their friends," said Su Liying, deputy president of the court.

In one case, 48 separate investors referred the same company to the court after losing money on their investments.

"But in fact many of them knew each other, and had purchased the same financial product," Su said.

"The large amount of money involved meant this was not a simple commercial dispute. It was a criminal one."

She said that now financial products can be sold online or through smartphone applications, buyers have to be particularly wary about becoming the victim of a scam.

"Many online financial products lure investors with the promise of high returns, but these sometimes are not protected in line with the laws," she said.

"Buyers should also understand that these investments carry high risks as well as the potential for high returns."

The court advised residents to be sensible in their investments and familiarize themselves with the markets, to reduce risks and protect their own interests.