This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Women Accused Of Massive China Real-estate Fraud

Gong's ability to get the fake identity cards is central to the popular interest, suggesting corruption among the police who issue the cards. Authorities have already detained four police officers on suspicion of helping Gong obtain the fake IDs, the Ministry of Public Security said.

Fake IDs can help hide income and business activities and circumvent rules in Beijing and other cities that limit the number of houses and apartments someone can buy to prevent speculation and tamp down prices.

Multiple IDs give a person access to benefits others are deprived of, said Yang Xuedong, a researcher at the Central Bureau of Compilation and Translation, a Communist Party think-tank.

"It allows some people to become privileged citizens, enjoying double benefits in property purchase, loans, education, child birthing and social welfare. It also provides convenience for some officials to hide assets and even abscond overseas," Yang wrote in a recent commentary in the Global Times.

Gong's case coincides with others that have emerged in recent months of government officials buying up large numbers of properties beyond what their civil servant incomes should be able to afford. A senior urban management official in the southern city of Guangzhou and his family had 21 properties. In the northeastern province of Heilongjiang, a political commissar of an anti-corruption bureau and his ex-wife had 19. In central Henan province, a housing director and his children bought 25 properties.

Although Gong is not a government employee, she serves on local legislatures and is seen as part of China's sprawling bureaucracy. As a bank official, she had access to public resources.

The Chinese public also is concerned that loopholes in supervision, as alleged in Gong's case, also have helped government officials accumulate wealth and evade accountability.

"The contrast is too huge when government officials should have dozens of houses while ordinary people cannot afford a single unit from a lifetime of work," said Liu Shanying, a political scientist at the Chinese Academy of Social Sciences.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs