New rules could see change for Chinese investors
SHANGHAI 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.
But soon investors like Mr Shen may start switching to other assets after Beijing published draft guidelines on Nov 17 banning financial institutions from guaranteeing investors against losses.
A move away from bank WMPs by Chinese investors, would likely trigger a seismic shift in China's asset management industry, with the new rules apparently favouring transparent mutual fund products. - REUTERS