Chinese wealth management products are seeing a massive sell off. Here’s what’s behind it.

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A stockholder checks the closing points of A-share indexes on his mobile phone in Hangzhou, east China’s Zhejiang Province.


Chinese bond prices have declined sharply, prompting a surge of wealth management product redemptions by risk-averse individual investors. Many other individual investors, who have long considered bond-backed wealth management products to be one of the safest havens, are only now learning about their risks.

Kelsey Cheng and Wu Yujian When Li Ming put around 10,000 yuan ($1,450) in a wealth management product (WMP) in November, he expected nothing short of a fool-proof investment. But within just a few days, local bond market turmoil led to plunging values of WMPs, which had invested heavily in bonds, stoking panic among retail investors including 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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