A death sentence for a young Chinese businesswoman chills entrepreneurs

protomyth wrote: post #3

Does this mean angel investing is illegal in China. I am not sure what "raising and pooling money outside the official system" really means.

That's a good question. That seems like important context. What does the "official system" consist of, exactly, and why do so many entrepreneurs apparently raise funds outside of it?

Re: A death sentence for a young Chinese businesswoman chills entrepreneurs

#5

Post by Joakal » Fri, Apr 15, 2011, 10:06 PM UTC

protomyth wrote: post #3

Does this mean angel investing is illegal in China. I am not sure what "raising and pooling money outside the official system" really means.

There's more to the story since behind door trials occur when officials get involved.

I believe it's more than that due to the wild speculation.

Re: A death sentence for a young Chinese businesswoman chills entrepreneurs

#6

Post by bilbo0s » Fri, Apr 15, 2011, 10:13 PM UTC

I don't know.

80% returns?

Really?

She was able to get 80% returns?

GUARANTEED?

This lady kind of sounds like a potential Madoff who got caught early.

Yes, she may be totally innocent. That is one of many possibilities. Having mentioned that... man...

80%?

guaranteed?

Trading Futures?

Maybe the punishment is a bit harsh, but it really does seem she was not totally on the up and up.

And secondly, what kind of a person gives their money to someone promising 80% returns risk-free? Who did she raise this money from?

I mean let's say you're listening to a financial services guy give a pitch over Evian and roasted sweet potatoes with cumin. Right. He says, "I'll get you 80% yearly on your money! Guaranteed! Risk-free!"

Well at that point you and I probably look at each other, and just leave. Who would believe that?

Re: A death sentence for a young Chinese businesswoman chills entrepreneurs

#7

Post by chc » Fri, Apr 15, 2011, 10:27 PM UTC

bilbo0s wrote: post #6

I don't know. 80% returns? Really? She was able to get 80% returns? GUARANTEED? This lady kind of sounds like a potential Madoff who got caught early. Yes, she may be totally innocent. That is one of many possibilities. Having mentioned that... man... 80%? guaranteed? Trading Futures? Maybe the punishment is a bit harsh, but it really does seem she was not totally on the up and up. And secondly, what kind of a person…

"A bit harsh" is a lot of an understatement. They're talking about killing her.

Re: A death sentence for a young Chinese businesswoman chills entrepreneurs

#8

Post by dengzhi » Fri, Apr 15, 2011, 10:42 PM UTC

in Chinese http://finance.21cn.com/shjj/2011/04/15/8240735.shtml

Re: A death sentence for a young Chinese businesswoman chills entrepreneurs

#9

Post by gatsby » Fri, Apr 15, 2011, 10:43 PM UTC

This Economist article paints a very different picture from the article below:

http://www.chinadaily.com.cn/china/2009-12/18/content_920158...

Businesswoman gets death sentence for defrauding investors out of tens of millions of dollars vs. Businesswoman gets death sentence for fundraising

Re: A death sentence for a young Chinese businesswoman chills entrepreneurs

#10

Post by raquo » Fri, Apr 15, 2011, 10:55 PM UTC

bilbo0s wrote: post #6

I don't know. 80% returns? Really? She was able to get 80% returns? GUARANTEED? This lady kind of sounds like a potential Madoff who got caught early. Yes, she may be totally innocent. That is one of many possibilities. Having mentioned that... man... 80%? guaranteed? Trading Futures? Maybe the punishment is a bit harsh, but it really does seem she was not totally on the up and up. And secondly, what kind of a person…

There are ways to generate such returns if you fund illegal activities (being separated from them by an intermediary) – not necessarily drugs/firearms – stealing government funds (kickbacks, abusing authority, etc.) works even better.