Fundraising fraud is one of the most serious and complicated financial crimes in China. It has an intertwined relationship with a regulatory offence, known as illegally taking in deposits from the general public (ITIDFGP). In judicial practice, ITIDFGP works as the downgraded form of fundraising fraud. This article explores why fundraising fraud is identified as financial fraud whereas ITIDFGP is a regulatory offence. The paper discerns the essence of fraud in Chinese criminal law and critically examines the concept of “intention to possess illegally.” It argues that ITIDFGP should be classified as a form of fraud de jure, although, in reality, there are policy considerations behind its categorization as a regulatory offence. The paper also suggests that the role played by the socioeconomic policy in Chinese criminal-law legislation should be fully acknowledged.
