Photographer: Kevin Lee/Bloomberg

China Warns Asset Managers About 'Ponzi Scheme' Risks

Updated on
  • Asset Management Association reiterates ban on money pooling
  • China's biggest-ever Ponzi scheme was exposed in December

China’s asset managers were warned of “Ponzi scheme” risks from pooling investor funds intended for different products, as an industry association said a joint venture between Citic Trust and Citic-Prudential Fund Management was being punished for violating restrictions on such practices.

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