Caixin OnlineFinance & EconomicsTop Stories Finance How China’s Banks Risk Wealth Management Cash
07.21.2011 16:18

How China’s Banks Risk Wealth Management Cash

Banks are rolling over wealth management investments to finance real estate and local government projects, raising red flags
By staff reporters Wen Xiu, Yang Na, Chen Huiying, Zhao Jingting and Ma Yuan

Call it the Great Wealth Rollover of China.

The nation's banks have been introducing new wealth management investment products at a blurring pace over the past year, dazzling upper-class clients with fat catalogues of high-yield investment opportunities.

Yet Caixin has learned from bank and regulatory sources that much of the wealthy investor cash pouring into short-term, high-risk products is being rolled over by banks to provide fresh financing for long-term investments, including unfinished property developments, local government financing platforms, railway projects and private equity.

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