A HUGE steel market in suburban Songjiang District, which is reportedly illegal, is still expanding and attracting investors amid claims that it has cheated 60 million yuan (US$9.589 million) from overseas Chinese investors.
Local land planning authorities yesterday professed ignorance about the case but said they would look into it following the media exposure.
According to the Beijing-based Faren Magazine, about 70 overseas Chinese investors were reported to have invested 60 million yuan in the 80,000-square-meter market built by a Shanghai company in 2010 in Xinqiao Town of Songjiang.
They were reported to have signed a contract with the company, Shanghai Bolian Properties Co, to purchase 104 stores in the block of buildings to rent to other investors. But two years later they are still to receive any rent, the investors complained to the magazine. They cannot even get their money back as they found that the market was built illegally without any licenses.
Shanghai Daily found that the place was still operating as a huge steel market. It has in fact been expanded to over 100,000 square meters and is now owned by another company.
An official surnamed Li with the market said they are now seeking investors for a new project to develop the market into a business zone, even though they presently lack certain licenses.
Landmark building should respect the public's feeling
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