Synopsis
Chinese bond costs have declined sharply, prompting a surge of wealth administration product redemptions by risk-averse particular person traders. Many different particular person traders, who’ve lengthy thought-about bond-backed wealth administration merchandise to be one of many most secure havens, are solely now studying about their dangers.
Kelsey Cheng and Wu Yujian When Li Ming put round 10,000 yuan ($1,450) in a wealth administration product (WMP) in November, he anticipated nothing in need of a fool-proof funding. But inside just some days, native bond market turmoil led to plunging values of WMPs, which had invested closely in bonds, stoking panic amongst retail traders together with Li. “It’s supposed to be a low-risk WMP, and I have never taken a loss from such products before,” he
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