“As the potential investment returns in this area are much more uncertain than during the peak years of property growth, the attractiveness of their products to retail investors will also decrease,” says Choyleva.
All this is little solace to middle-class investors such as Wang, who increasingly feel that the government has broken the social contract that allowed people to get rich so long as they didn’t get involved in politics.
In 2018, China’s regulators introduced a host of reforms to try to get a grip on the shadow banking sector, including banning financial institutions from offering guaranteed returns on investments.
In recent years it has also allowed an increasing number of trust firms to default; in January, Zhongzhi Enterprise Group, a shadow banking institution with up to £50bn in debts, filed for bankruptcy.
“What is happening is kind of in line with what the government has been striving for, for a very long period of time,” says Dinny McMahon, the head of China markets research at Trivium, a consulting firm – to establish the principle that an investor “should go in with their eyes open”.
This reflects a wider shift in China’s economic policymaking, with Beijing increasingly reluctant either to save failing companies or to inject the massive stimulus that economists say is needed to reboot the flagging economy.
The original article contains 1,304 words, the summary contains 219 words. Saved 83%. I’m a bot and I’m open source!
This is the best summary I could come up with:
“As the potential investment returns in this area are much more uncertain than during the peak years of property growth, the attractiveness of their products to retail investors will also decrease,” says Choyleva.
All this is little solace to middle-class investors such as Wang, who increasingly feel that the government has broken the social contract that allowed people to get rich so long as they didn’t get involved in politics.
In 2018, China’s regulators introduced a host of reforms to try to get a grip on the shadow banking sector, including banning financial institutions from offering guaranteed returns on investments.
In recent years it has also allowed an increasing number of trust firms to default; in January, Zhongzhi Enterprise Group, a shadow banking institution with up to £50bn in debts, filed for bankruptcy.
“What is happening is kind of in line with what the government has been striving for, for a very long period of time,” says Dinny McMahon, the head of China markets research at Trivium, a consulting firm – to establish the principle that an investor “should go in with their eyes open”.
This reflects a wider shift in China’s economic policymaking, with Beijing increasingly reluctant either to save failing companies or to inject the massive stimulus that economists say is needed to reboot the flagging economy.
The original article contains 1,304 words, the summary contains 219 words. Saved 83%. I’m a bot and I’m open source!