Huaxia scandal spotlights China's Ponzi crisis

It is an all-too-familiar tale. Depositors trust a bank with their cash in the hope their wealth will be managed well, only to find that the money has evaporated at the end of the agreed term.

In the latest scandal to rock China's banking industry, dozens of depositors lost their multimillion-yuan investments in a "wealth management product" (WMP) sold at a Shanghai branch of Huaxia Bank.

The sorry saga was a rude reminder that Ponzi schemes thrive on the mainland, where millions of residents still believe that banks are the safest havens for their lifelong savings.

via Business feed http://www.scmp.com/business/china-business/article/1101536/huaxia-scandal-spotlights-chinas-ponzi-crisis