This long form article by the WSJ highlights that with Chinese banks holding a staggering $20 trillion in deposits (more than a third from household savings) online "crowdfunding" pitches have attracted roughly $200 billion in 2015 and even more in 2016 as Chinese consumers seek an attractive yield.
In January and February, Chinese electronics maker Cosun Group failed to repay about $166 million in bonds sold through an online marketplace owned by Ant Financial Services Group. Ant is an affiliate of e-commerce giant Alibaba Group Holding Ltd. and is valued by some analysts at more than $70 billion. Many of the investors used Ant’s highly popular Alipay online payment system. After at least 13,000 Ant customers were affected, Ant said it was working to get them repaid but has declined to comment since then. Cosun couldn’t be reached for comment.