Retired Shanghai truck driver Shen Xipei shunned risky stocks and low-yielding deposits and instead put his life savings into a wealth management product (WMP) sold - and guaranteed - by a bank. Soon, however, investors like Shen may start switching into other assets after Beijing published draft guidelines on Nov. 17 to ban financial institutions from guaranteeing investors against losses, tightening supervision of what the central bank says is a $9 trillion asset management industry. A move away from bank WMPs by armies of Chinese investors - which some analysts expect - ...
China's new rules for small investors to spell positive shift to MFs
Beijing wants markets to price risk better; move to help reduce systemic financial risk, aid a shift towards mutual funds; financial institutions to be banned from guaranteeing principal
Reuters Last Updated at November 27, 2017 01:50 IST