World's biggest bank ICBC hit by China investment scandal

The Industrial and Commercial Bank of China (ICBC), the world's largest bank, is the latest to be hit by the China investment scandal. Police have detained five employees at an ICBC branch in Chengdu after wealth management products they marketed sustained heavy losses, and officials at the Shenzhen-based fund management company that issued the products have also been arrested, according to mainland Chinese media. Funds were channelled into high risk mining projects and bank managers ignored the risks and continued to market the products to investors. More than 100 high-net-worth clients have reportedly lost RMB 400m ($62.5m).

Funds raised through wealth management products in China are often channelled to dubious projects. Photo: AP