A third of China’s listed firms place their trust and cash in lightly regulated wealth products
Eight listed firms have each invested more than 10 billion yuan in accumulating wealth management products this year
Roughly a third or 1,126 A-share companies have invested in wealth management products (WMPs), an increase of nearly 30 per cent from a year earlier, with investments of eight listed companies exceeding 10 billion yuan (US$1.5 billion) each, according to data provider Wind.
Shanghai-listed Xinhu Zhongbao, a Zhejiang-based property developer, has the highest accumulated investment worth 24.1 billion yuan in WMPs.
According to Wind, most of Xinhu Zhongbao’s investments are structured deposit products in money market products offered by commercial banks, with maturities between 22 days to six months, and a rate of return ranging between 1.6 to 4.9 per cent.
Shanghai-listed Minmetals Capital, a state-backed manufacturer and distributor of electronic equipment and power supply materials, has bought into eight short-term, structured deposit products this year, worth 13.5 billion yuan.