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 Chinese investors - which some analysts expect - would likely trigger a seismic shift in China's asset management industry, with the new rules apparently favouring...