Wealth Products Threaten China Banks as Ponzi-Scheme Risk Swells

Wealth Products Threaten China Banks as Ponzi-Scheme Risk Swells

Tomohiro Ohsumi/Bloomberg

A man walks through the foyer of a commercial building as the Oriental Pearl Tower stands behind a glass window at dusk in the Lujiazui district of Shanghai. While China’s cash crunch eased in early July, investors’ appetite for wealth-management products intensified.