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EY’s office surrounded by anxious investors

THE Shanghai office of auditing firm Ernst & Young (EY) was surrounded by throngs of investors today, as the firm was drawn into a public battle that questioned EY's alleged participation of a former online peer-to-peer lending fraud.

Although EY denied earlier, nearly 100 investors still made up the scene after a previous gathering on September 9 as some investors of P2P platform Jinxing Investments, or Shanghai Uprosper Asset Management Co, said its boss disappeared, leaving over 400 million yuan (US$59.9 million) assets unable to be cashed.

Jinxing Investment claimed that the risk management of their investment products were run by EY, and was under a "strategic cooperation" with the auditing firm. It prompted anxious investors to seek EY's response for the investment they lost.

A 60-year-old investor surnamed Zhang told Shanghai Daily that her appeal is to get repayment from EY, as if EY got involved and paid by Jinxing, investors have the right to get parts of the redemption.

"EY promised to give us an answer by September 20, but they didn't keep their words," Zhang said. "We have no choice but to seek for solutions here and there."

EY denied in statement on September 9 that the company has no relationship with Jinxing, and hasn't got involved in any auditing procedure of Jinxing's products. Jinxing took off the information of EY’s partnership from its official website as Shanghai Daily checked today.

EY didn't respond to Shanghai Daily's quest about today's issue or release any further measures to appease the dispute.

One third out of existed 4,000 Chinese P2P platforms have reported frauds or difficulties in withdrawing cash by the end of June this year, according to Online Lending House, a portal site that tracks the sector. The absence of regulation, legitimacy of platforms’ operation and investors’ distinguish capability of risks are among the main subjects to blame.


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