Full repayment of investors’ principal and interest, though not mandatory (as with bank deposits, certain insurance products, etc.), was routinely offered by PRC asset management firms for years. Their risky investments were counter-indicated for fixed-return contracts. Yet dangling full repayment did attract clients, keeping firms competitive in the market. Previous investors were repaid by issuing new investment products, leading to the Ponzi-like ‘shadow banking’ system. Regulators formally outlawed this practice in 2018, but gave a 2-year grace period for the industry to gradually eliminate the risky products.