Local authorities have begun to investigate fundraising schemes that led investors to block roads and railways in Jishou, Hunan, last week.

The government of the Xiangxi Tujia and Miao autonomous prefecture announced on Sunday that investigators had been sent to companies suspected of illegal fundraising and that a probe of their assets had begun.

Officials ordered all underground fundraising activities to stop and suspected firms to suspend paying interest until the probe is complete.

On Wednesday, investors in one real estate company gathered at the government office in Jishou, asking authorities to intervene after the company failed to pay them back as promised.

Investors and their supporters gathered at the city's railway station on Wednesday night, but they were convinced to disperse after about an hour.

However, on the investors gathered again Thursday morning, blocking traffic and delaying trains at the railway station.

Traffic returned to normal and the railway station resumed operations on Thursday evening.

Since 2004, some real estate, mineral extraction, and tourism companies in Xiangxi have been involved in underground fundraising, offering unusually high interest. Recently, some of these companies have been unable to repay investors, officials have said.

Conflicts between investors and these companies intensified last month and escalated into public demonstrations last week.