Chinese Trust Fund Investors Face Ruin as Risky Investments Sour

• Some investors in a troubled Chinese trust fund face financial ruin under a government plan to return a fraction of their money.

• China’s property slump and broader economic slowdown have contributed to losses at the trust fund.

• Trusts advertised as reliable, high-interest accounts but were actually risky investment vehicles funding things like malls.

• Weak oversight allowed trusts to operate like Ponzi schemes, using new investors’ money to pay earlier ones.

• Investors who lost money feel mistreated, with some detained for protesting, but widespread losses may have been inevitable.