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, according to two local newspapers earlier this month.

Lee said the bank told him that the manager who persuaded him to buy some WMPs had committed suicide after the products matured....

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222