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How a huge Chinese 'Ponzi scheme' lured investors

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Beijing: Kang Weiwei considers herself cautious. When China's stock market took off, she stood on the sidelines. She steered clear of financial products that she couldn't really understand. But the 32-year-old Beijinger needed somewhere to park the $US76,000 ($107,000) that her family received from selling an apartment they got as part of a government relocation program. What, she wondered, could beat inflation but keep them safe? The answer came on the 7 o'clock news. An ad running moments before Chinese state television's flagship CCTV news broadcast touted a peer-to-peer online lending company called Ezubao that said it matched borrowers and lenders online, potentially making credit...

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