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27-07-2017, 01:15 PM
Why Ponzi schemes are thriving in China despite crackdowns
People are easily wooed by fraudulent fund companies' promises of high returns on their investments
by Frank Tang
PUBLISHED : Tuesday, 25 July, 2017, 7:14pm
UPDATED : Tuesday, 25 July, 2017, 11:15pm
The financial naivety of the public and a collective desire for unfeasibly high returns have helped fuel the proliferation of fraudulent investment schemes in China, according to an academic.
"China's financial markets were opened in the 1990s and the pace at which they have developed has brought many risks," said Zhao Xijun, deputy dean of the school of finance at Renmin University of China.
"People are eager to achieve high returns, but they do not have adequate knowledge of the financial risks or how to screen [products] for them," he said.
Zhao was speaking after tens of thousands of members of the Shanxinhui (Kindness Exchange) scheme, which was declared illegal by the government over the weekend, took to the streets of southern Beijing on Monday in protest. The mastermind behind the scam, Zhang Tianming, has been arrested.
More details in http://www.scmp.com/news/china/money-wea...-knowledge
People are easily wooed by fraudulent fund companies' promises of high returns on their investments
by Frank Tang
PUBLISHED : Tuesday, 25 July, 2017, 7:14pm
UPDATED : Tuesday, 25 July, 2017, 11:15pm
The financial naivety of the public and a collective desire for unfeasibly high returns have helped fuel the proliferation of fraudulent investment schemes in China, according to an academic.
"China's financial markets were opened in the 1990s and the pace at which they have developed has brought many risks," said Zhao Xijun, deputy dean of the school of finance at Renmin University of China.
"People are eager to achieve high returns, but they do not have adequate knowledge of the financial risks or how to screen [products] for them," he said.
Zhao was speaking after tens of thousands of members of the Shanxinhui (Kindness Exchange) scheme, which was declared illegal by the government over the weekend, took to the streets of southern Beijing on Monday in protest. The mastermind behind the scam, Zhang Tianming, has been arrested.
More details in http://www.scmp.com/news/china/money-wea...-knowledge
Specuvestor: Asset - Business - Structure.