China Construction Bank investigates wealth management product dispute
SHANGHAI (REUTERS) - China Construction Bank Corp (CCB) said on Thursday that it is investigating allegations by investors that a clerk at the country's second-biggest lender misled them into buying a wealth management product that underperformed.
Seven investors have complained to the country's banking and securities regulators after the product lost more than 30 per cent of its value after being sold to them as a fixed-income product with guaranteed returns, the National Business Daily reported on Wednesday.
The dispute highlights the risks linked to wealth management products, which had grabbed national media attention earlier this month when a product sold to retail investors at a branch of Hua Xia Bank in suburban Shanghai failed to pay out.
On Monday, CITIC Trust, run by one of China's largest investment firms, said it had delayed an interest payment due on an investment instrument marketed to wealthy investors mainly through banks.