China's police have busted five major black markets dealing in illegal money transfers and unauthorized foreign currency conversion. The sums involved are a staggering 10.4 billion yuan (1.3 billion US dollars).

    By the end of July, police had arrested 27 suspects and seized funds worth more than 34 million yuan (4.25 million US dollars), the police authority announced on August 8.

    "Illegal forex trading is a major component of these black market businesses," said Wu Heping, spokesman for the Ministry of Public Security, calling for public awareness of the crackdown.

    "It is very risky to trade in black markets because we confiscate all the funds we find," Wu said, warning the public that involvement in illegal forex trading will lead to severe penalties.

    China has intensified its fight against illegal forex trading in recent years with joint efforts by the police, the central bank, and the foreign currency exchange administration.