The Asian Banker

Weak risk controls heighten risk of Chinese bank WMPs
Chinese Banks urgently need to resolve weak oversight of wealth management products in order to avoid scandals such as Hua Xia Bank’s failed WMP.

Dec 20, 2012 | Alice Yang

Chinese investors recently gathered at the gates of Hua Xia Bank’s Jiading branch to protest the bank’s default in a wealth management product. While judicial results have yet to be released, the claim is that an employee allegedly sold the bulk of a wealth management product to the equivalent of 119 million renminbi ($19.1 million), with the bank now not being able to repay said investors. It is bemusing that an unpermitted wealth management product could be sold at a bank branch for over half a year without the bank’s knowledge. In this case, the concern is not only about an employee’s…

Please login to read the complete article. If you already have an account, you can login now or subscribe/register.

Categories: China, Regulation, Retail Banking, Risk and Regulation, Wealth Management
Keywords: Hua Xia Bank, WMPs, BoC, Xiao Gang
Add a new comment:

Allowed tags: <b><i><br>

Comments (0)

Show Less
White Papers
About us | Jobs and Internships with us | Contact us | Advertise with Us | | Privacy Policy | Copyrights Requests | Legal Notice | Feedback
RSS FeedRSS Feed | Follow us on Linkedin Twitter Facebook
Copyright 2014, The Asian Banker. All Rights Reserved .