Chinese public change financial management ideas
Chinanews, Beijing, Mar. 28 – Various types of funds are selling like hot cakes in the securities market, which shows that Chinese public has taken a fundamental change in their idea of financial management. However, it should be noted that many Chinese people buy such funding products without the basic financial knowledge and their buying behaviors are somewhat irrational, the International Finance News reported.Since the first trading day after the Spring Festival, there has been a panic purchase of funds and treasury bonds among residents. Staff in banks and securities companies have already got used to the hot sales. Most of these funds and treasury bonds, which will allow buyers to subscribe for one month, are usually sold out on their first day of issuance.
“More and more Chinese people now buy these funding products, which shows that Chinese people’s idea of financial management has taken a fundamental change. Compared with the mature market in developed countries, the funding market in China still has great potential for development,” said Guo Peng, a financial analyst in Bohai Securities Company.
Many Chinese people used to put their money in banks. However, the rapid rise of the housing prices in real estate market last year made many Chinese people realize that compared with the fast rise of the value of investment products, the earnings made in banks were too small. Many Chinese people have started to look for new ways to manage their assets, said Huang Fuguang, a professor at the School of Financing Management of Nankai University.
However, some insiders warn that the hot sales of funding products reflect some people’s irrational behavior. Many people buy these products without much knowledge of the potential risks involved. They bought it only because they heard their friends or relatives say that the products were profitable. Many buyers actually didn’t know what funding products were about.