Growth in wealth products leaves China non-state banks exposed to liquidity risk

Chinese currency

China's banking sector faces growing risks from smaller non-state-owned banks' aggressive issuance of wealth management products to attract and retain depositors, say analysts.

Wealth management products in China are similar to term deposits and are often linked to equities or equity indexes with tenors ranging from 30–90 days offering returns of 4–5% per annum on average. By comparison, the People’s Bank of China (PBOC) rate for a one-year term deposit is currently 3.25%.

State-owned banks had

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here