Margin Trading Lender Closes, Prompting Investors to Turn to Police

(Shanghai) – A website that let retail stock investors borrow funds for trading has suddenly closed, leaving hundreds unable to access their accounts and withdraw deposit money – in what appears to be the latest in a string of fraudulent investment schemes in China that one regulator has described as "serious beyond precedent."

At least 200 people who borrowed through 9caiu.com and its mobile application to buy stocks have been unable to log into their account and reach the website's customer service representatives as of December 31, several investors said.