True or False: Guaranteed minimum of 40% returns

I had some difficulty thinking of what to write in this post and as I read the posts of other bloggers, I thought that I should share about my Chinese beautician who is an excellent source of stock market ideas and everything from China. 

Basically we talk about stocks almost all the time since she invests in purely Chinese stocks. Currently ACCICB covers Chinese stocks so I've been thinking of starting my research and who knows I may pick up some stocks along the way.

Back when we both didn't know that the other invests/trade, we already get along since we bitch to each other about work and I find her rather similar to me in terms of personality. I admire her candor among other characteristics and over the space of many years, we have become rather close.

I do worry when she wants to return back for good and as she will be going home for a month, she told me that she knows of this scheme in China which seems like a deal too good to be true except that it's true. Or at least it's true now until some bad thing happens? 

She says that basically there are companies in China which guarantees returns of 40% and above on a single stock. They will send you sms to tell you when to buy or sell a stock and after you have sold the stock, you are to give them 30% to 50% of the profit together with your trading slip. They are so confident of their stock picks such that you get to manage your own money so basically if you don't pay up, it's just a one time loss to them. 

They would even give you some stock buy and sell sms for 6 months just to prove their success even before you sign a contract with them indicating that you will pay them commission of between 30% to 50% of your profits. Apparently, it works by referral so you can't exactly just decide to go to their company and ask to sign up. The initial sum is a pretty sum as well so I guess that's another hoop that you have to jump through.

Now, she tells me that she intends to join forces with her younger brother to invest in this scheme as she doesn't have enough time to monitor her portfolio plus the returns that some of her relatives and friends who have profited from this scheme is just too mouth watering to resist. This made me wonder whether this is one of the reasons why the Chinese stock market has been rocketing.