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Fascinating documentary, thanks for sharing! If I understand the business model correctly, isn't the 融道网 (Roadoor.com) 9.00% guaranteed principal + interest me
by ericjang 10y ago
Fascinating documentary, thanks for sharing!
If I understand the business model correctly, isn't the 融道网 (Roadoor.com) 9.00% guaranteed principal + interest mentioned in the documentary considered a Ponzi scheme in the US? How much of the return on capital is from RoI from investment into companies (exits, dividends, organic growth) vs. just increased AuM from (老百姓) investors?
Edit: just realized that businesses requesting loans to 融道网 are screened prior to being made available to public investors, so the deal flow appears to be capped by available business opportunities.
- smaddox 10y agoYeah, just like mortgage lending prior to 2008 was "capped" by the availability of quality debtors.
- chvid 10y ago9% pa. guaranteed by a bank is amazing in a strong currency like the yuan. It is not a ponzi per se since money actually flows into real investments; however there is probably a "systemic" risk at the level of the Chinese economy as whole. Funny that this excellent documentary is made by the Japanese national TV channel NHK. There is quite contrast between China and Japan today wrt. speed, risk taking and growth.