Police Crack Down on Illegal Sale of Long-Term Suspended Bond Case with Over 200 Million Yuan Involved

Special Topic: International Consumer Rights Day 2026—Market Regulation in Action on March 15

Live broadcasts falsely promote bonds, claiming that buying them guarantees profit, but in reality, these bonds have been transferred to the special trading board due to issuer reasons. Recently, Shanghai police conducted a thorough investigation and successfully cracked a major illegal operation involving inducing investors to buy suspended bonds. Over 30 suspects involved in illegal bond trading were arrested, with the case involving over 200 million yuan.

In September 2025, multiple investors reported to Shanghai police that the bonds they purchased through online live recommendations could neither be redeemed nor traded due to lack of trading counterparts, raising suspicions of fraud. In response, police organized a task force to analyze the situation and found that these investors had purchased long-suspended bonds. Normally, these bonds have very low trading volume, but the company had accumulated a large number of agreements to buy them. Police suspected illegal activities such as illegal trading and bond recommendation, and launched an investigation.

According to investigations, from February to September 2025, suspect Xu and others sought to profit by purchasing large quantities of suspended bonds from illegal private placements at low prices without proper bond business qualifications. They used high-profit margins as bait, offering free live broadcasts to induce investors to buy at high prices and illegally profited over 60 million yuan. For example, suspects used illegal intermediaries to buy suspended bonds with a face value of 100 yuan at about 10 yuan on the market. They then exploited investors’ lack of understanding of bond trading and risk awareness, first convincing them that the trading price of around 80 yuan during suspension was the current market price, then诱导 them to buy at about 50 yuan, tricking investors into believing they could profit from the price difference when the bonds resumed trading. In reality, investors often mistakenly think they are “picking up a bargain,” but they face multiple risks, including potential inability to redeem.

Police found that Xu and others recruited sales staff to attract clients through cold calls and social groups, guiding investors into free stock recommendation live rooms. They fabricated investment myths about the main speakers to gain trust and induce high-priced purchases of suspended bonds. To create a convincing atmosphere, members of the bond sales team played different roles such as “water army,” “assistants,” and “teachers” to simulate a credible investment environment. If investors lacked the qualifications to purchase bonds, Xu and others arranged for dedicated personnel to provide company services and open legal securities accounts with specific bond purchase permissions to facilitate bond transfers.

In November 2025, Shanghai police launched a full-chain operation, cooperating with police from other provinces and cities, and arrested over 30 suspects including Xu and Lei. Currently, these suspects are under criminal detention for illegal business operations, and the case is under further investigation.

(Reporter Yu Xiang, China Central Radio and Television)