China’s banking regulators on Wednesday gave the country’s consumers a lesson in basic financial fundamentals, urging them against the risks involved in investing.
The note of caution sounded by the China Banking Regulatory Commission comes at the start of a year in which many analysts expect much less spectacular performances by the country’s stock markets than over the past two years. The Shanghai Composite index gained 97% last year after soaring 130% in 2006 as millions of retail investors rushed to buy shares and mutual funds. The notice urged individual investors to make themselves more familiar with wealth management products offered by the country’s banks before buying them. Wealth management products sold in banks reached nearly one trillion yuan ($137.5 billion) for the whole of last year. (CCTV)