China’s leaders fret over debts lurking in shadow banking system

29 Dec 2017   China

In March 2013, retired chemical company employee Anne Xing, her older sister and their husbands visited a China Everbright Bank branch on the outskirts of Shanghai. A private wealth manager at the bank had a special deal to offer them. “He said there is a high-quality product,” Xing recalls. “Only elite customers can buy it. We asked him if there was any risk. He said there was no risk.” The two couples sank about 5 million yuan (about $762,000) into the investment product, which offered 9.5 percent annual interest over two years – substantially higher than the 3.75 percent they could earn on a fixed, two-year deposit at the same bank. Xing’s sister said she sold a property for 3 million yuan […]

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