By Clifford Hwang
Beijing has promoted internet finance in the past few years
as a way to make affordable credit available to more businesses. With the explosion
in internet financing, the development of regulation has been slow. Since its founding in 2014, Ezubao defrauded
more than 900,000
people out of the equivalent of $7.6 billion. Ezubao promised investors with returns as
high as 15 percent, but nearly all of the investment products were fake. Some of the most worrying aspects of the
scheme was that Ezubao was able to grow this big in China and with what seems
like government support, which raises corruption concerns. Read more about Ezubao here.
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