A default in the repayment of an investment product sold by one of China’s state-owned banks has resulted in disgruntled investors protesting at the bank.
So much for being called Wealth Management Products (WMP); I think they are more suitably called wealth destruction products.
Huaxia scandal spotlights China’s Ponzi crisis (South China Morning Post)
Investment default highlights risks in wealth management market (Global Times)
We can expect more defaults to come from similar products sold rampantly by other China banks.
The principle of Caveat Emptor (buyers beware) simply does not work when mis-selling is rampant. Unfortunately, this happens not only in China, but in many places as well.