In fact, the reason is very simple, because the CBRC's action this time has greatly reviewed the wealth management products of many banks, even involving the insurance industry. The main reason why they pulled these products off the shelves is that financial management itself is risky, but banks have promised to protect their capital in order to promote products. And this is actually very risky for banks, so they will take off their products, so today we will discuss this topic.

First, is there any risk in bank financing?

First of all, we can clearly tell you that bank financing is risky, even if you buy funds through banks. I'm sure you must be very aware of the major problems of crude oil treasure years ago, which directly led to many people demanding property at that time. It can be seen from this that no matter the wealth management products purchased through any channel, there are huge risks and it is impossible to completely break even.

Second, why should all these products be removed from the shelves?

Because if we don't take these products off the shelves, it means that banks can absorb a lot of money through these products, but not all the investments of banks can be guaranteed and there will be losses, so in this case, banks have to find funds from other places to supplement these wealth management products. From this point of view, do people who buy these wealth management products only make money without losing money? The interest rate they pay for these wealth management products is much higher than the interest rate they deposit in the bank.

Third, how to treat this phenomenon?

In my opinion, this rectification activity is very necessary, which can not only lead to some chaos in the banking industry, but also carry out a relatively large overall reform of the insurance industry. Especially in this rectification process, many banks have rearranged their wealth management products. Because if not, many of its products will lead to systemic risks.