Thousands of Hongkongers Cheated out of HK$2 Billion in Greater Bay Area of China Property Scam

In recent years, there has been a popular trend of buying property in the Greater Bay Area (GBA), an area including Hong Kong, Macau, and nine Pearl River Delta cities in the Guangdong Province in southern China. Some of the projects were even promoted under a “guaranteed return” tag, to lure potential investors.

Recently about 20 such investors, who used to claim to be patriots towards both China and Hong Kong, suspected they might have fallen victim to the so-called “unfinished buildings” scam. To seek the help they went to petition the Securities and Futures Commission on Aug. 30, asking the authorities to conduct a thorough investigation.

Two such claimants, Ms. Yu, and Ms. Ma, both Hong Kong citizens, in Sept. 2017 purchased some shops (together with other investors) on “Shou Xin Cultural and Tourism Creative Pedestrian Street” (now known as Hai Ke City) in Zhangmutou, Dongguan City they paid RMB 360,000 (US$52,200) and RMB 478,000 (US$69,300) respectively.

The developer originally planned to hand over the shops in 2018, but the shops were deemed to be of illegal construction and failed to pass the fire protection requirements, and their request for a refund was unsuccessful.

About thirty people assembled at the Securities and Futures Commission, asking the authorities to conduct a thorough investigation into the alleged property purchase scams in the Greater Bay Area of China on Aug. 30, 2022. (Sung Pi-Lung/The Epoch Times)

‘Traps Everywhere’

“It has been five years now, and we did not have a ‘single piece of brick’ in return for the money we paid.” They petitioned together with 22 other bitter owners, and later filed a petition with the local court, demanding the developer return the money to them.

Although they won the lawsuit, they still could not get the principal back in the end. After returning to Hong Kong they tried both the Hong Kong Liaison Office and the Chief Executive’s Office for assistance. Both offices replied they would ask the Hong Kong Economic Trade Office in Guangzhou to follow, who would then deliver their cases to the Guangdong Authority for investigation. However, until today there had been no response from either of those offices.

Ms. Yu continued to point out that many Hong Kong people were influenced by the authorities’ propaganda to invest in properties in the Greater Bay Area. But in the end, they bought some non-accredited collective investment schemes with claims such as “guaranteed returns.”

They accused the authorities of not properly exercising their duty and that they had all the rights to reclaim the losses. “We love our country and the party, so we responded by showing all the intention to live in the Greater Bay Area. But unfortunately, there were traps everywhere.”

About thirty people assembled at the Securities and Futures Commission, asking the authorities to conduct a thorough investigation into the alleged property purchase scams in the Greater Bay Area of China on Aug. 30, 2022. The notices set out their situation and their demands for help to recover their losses.  (Sung Pi-Lung/The Epoch Times)

‘Feels Like a Cambodia Piglet Sale’

She said that there are currently thousands of people suffering from “unfinished buildings,” involving about HK$2 billion ($255 million). Yu also rebuked the Hong Kong police for refusing to accept the case on the grounds that it happened on the mainland. That just makes them feel they are in the same situation as the victims of recent Cambodia’s “pig sale (luring people to go there and detaining them illegally)” scam.

They strongly demanded that Chief Executive John Lee Ka-chiu meet with the representatives of the bitter buyers and report the incident directly to China Leader Xi Jinping.

Ms. Yip, the convener of the Zhongshan Real Estate Incident Concern Group, said that some of the victims went to the mainland to sign their sales contracts under the arrangement of the staff of a large real estate agency in Hong Kong. As the contracts were not signed in the name of the Hong Kong agent, it is almost impossible to make the Hong Kong agent liable.

Ms. Yip said that they are currently sorting out the evidence about all the involvement of those “unfinished buildings.” After that they will formally file a complaint with the Securities and Futures Commission, requesting an investigation in the direction of whether such a collective investment scheme is legally approved.

About thirty people assembled at the Securities and Futures Commission, asking the authorities to conduct a thorough investigation into the alleged property purchase scams in the Greater Bay Area of China on Aug. 30, 2022. The notice explains the investors’ predicament. (Sung Pi-Lung/The Epoch Times)