Chinese business magazine: The platform, launched in July 2014, had amassed more than 50 billion yuan by December, said the report late Sunday, citing police as estimating 900,000 investors had fallen victim to the scam, according to The Japan Times. Ezubao was China fourth largest Internet P2P lender, Chinese business magazine publisher Caixin Group said in a previous report. Ezubao offered investors annual returns of between 9 percent and 14.6 percent on various projects, the official Xinhua News Agency reported — far more than currently offered by Chinese banks’ wealth management products. The company fabricated most of the projects on its website and paid old debts with money from new investors, Xinhua said. Yucheng chairman Ding Ning said the company spent more than 800 million yuan buying corporate information to invent the fraudulent projects, the report said. Ezubao is a typical Ponzi scam, it quoted Zhang Min, president of its owner Yucheng Group and one of those arrested, as saying in custody.
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Tagged under Chinese business magazine, Caixin Group topics.