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A man cycles a bike carrying his daughter past a branch of Industrial and Commercial Bank of China Ltd (ICBC) in Beijing in this June 26, 2013 file photo.
A man cycles a bike carrying his daughter past a branch of Industrial and Commercial Bank of China Ltd (ICBC) in Beijing in this June 26, 2013 file photo.
(Jason Lee/Reuters)

China fund failure makes investors shudder

Chinese investors who have poured millions into wealth management products have received a rude shock that highlights the risks of the current credit bubble. It is also sure to reverberate throughout China’s huge shadow banking system, which is rife with bad off-balance-sheet investments posing as safe vehicles for people seeking higher yields.