A wealth management product is an uninsured financial product sold in China by banks and other financial institutions. Typically they offer a high rate of interest, and, sometimes, guaranteed return. As of 2016, $2.8 trillion had been sold by banks during the previous 5 years. While the government sometimes intervenes to prevent losses by investors, some have failed.
Financial experts such as David Daokui Li of Tsinghua University, a member of the Chinese central bank’s monetary policy committee, believe wealth management products pose a substantial danger to China's financial stability.
Wealth management products grew rapidly throughout 2015 and 2016. Chinese households, companies and banks held a record balance of $3.9 trillion (26.3 trillion yuan) of wealth management products as of June 30, 2016.