Wealth management product

A wealth management product is an uninsured financial product sold in China by banks and other financial institutions. Typically they offer a high rate of interest, and, sometimes, guaranteed return. As of 2016, $2.8 trillion had been sold by banks during the previous 5 years. While the government sometimes intervenes to prevent losses by investors, some have failed.[1]

Financial experts such as David Daokui Li of Tsinghua University, a member of the Chinese central bank’s monetary policy committee, believe wealth management products pose a substantial danger to China's financial stability.[1]

Wealth management products grew rapidly throughout 2015 and 2016. Chinese households, companies and banks held a record balance of $3.9 trillion (26.3 trillion yuan) of wealth management products as of June 30, 2016.[2]

See also

References
  1. Keith Bradshear (August 12, 2016). "Trillions in Murky Investments Could Rock China's Economy". The New York Times. Retrieved August 13, 2016.
  2. Jun Luo (August 31, 2016). "China Wealth-Management Products Rise to Record $3.9 Trillion". Bloomberg. Retrieved October 16, 2016.
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