A right-wing group is being investigated for distributing anti-Asian flyers which police say could lead to violence.
The Right Wing Resistance, headed by former National Front leader Kyle Chapman, had been distributing the flyers in Auckland and Christchurch claiming an Asian invasion has started.
The pamphlets urging people to "Stop the Asian Invasion", have been in Auckland suburbs with high Asian populations, including Pakuranga, Howick and Northcote, the New Zealand Herald reported today.
Police were concerned the campaign could lead to racially motivated violence, Police Asian liaison officer Raymond Wong said .
Police would not hesitate to prosecute anyone who committed or incited violence, especially racially motivated, Mr Wong said.
"Some in the Chinese community are deeply concerned about these racist flyers and have taken their worries not only to the police but also to local Chinese radio," he said.
Police are investigating whether the campaign constituted a criminal offence.
Mr Chapman said the leaflet was part of a recruitment campaign and not designed to threaten Asian recipients, Radio New Zealand reported.
He said he was not a racist, but a right-wing political activist.
Race Relations Commissioner Joris de Bres said it was despicable but not much could legally be done about the flyers.
He had had at least five complaints from Christchurch and the suburbs of Northcote and Pakuranga in Auckland.
Residence approvals for migrants from China fell 13 percent last year from 2009.
Mr de Bres said the "very small group of extremists" did not represent the majority of New Zealanders.