Chinese risk awareness found wanting on wealth products

The recent case of a retail investor losing Rmb1 million is a vivid example of how ill-prepared Chinese people are in terms of making investments in wealth management products, say analysts.

The recent loss of Rmb1 million $160,000 by a Chinese investor is the latest example of a lack of risk awareness in WMPs and highlights bigger concerns about who will pay out if a wealth management product WMP fails.

An investor with the last name of Lee filed a law suit against China Minsheng Banking, a Beijing-based commercial bank, asking for Rmb1 million from the bank after buying its WMPs in June 2012,...

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