Unable to get bank loans to fund cash-thirsty projects such as oil pipelines and shopping malls, little-known Chinese private investment companies are popping up, promising returns of 10 percent or better and luring elderly pensioners with free lunches and shows. Acting as either middlemen or direct investors in risky development projects, the companies distribute fliers that typically list several offers with returns in the low double digits. Potential investors who respond are offered higher rates for even riskier deals while enjoying a free meal.
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