Your loss is your problem, China tells small investors as it tightens money rules

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.

Soon, however, investors such as Mr 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 US$9 trillion asset management industry.

A move away from bank WMPs by armies of C…