Wealth management product

A wealth management product (WMP; Chinese: 理财产品) is an uninsured financial product sold in China by banks and other financial institutions.

Typically they offer a high rate of interest, and sometimes, purportedly guaranteed return.

As of 2016, $2.8 trillion had been sold by banks during the previous 5 years.

While the government sometimes intervenes to prevent losses by investors, some WMPs have failed.

[1] Financial experts such as David Daokui Li of Tsinghua University, a member of the Chinese central bank’s monetary policy committee, believe wealth management products pose substantial risks to China's financial stability.