Alarm bells are ringing in China as people in search of high yields keep investing their savings in wealth-management products .
They typically offer a fixed rate of return of 3 to 5 per cent over a short period, usually less than six months, compared with 1.5 per cent for one-year bank deposits. They were sold not only to wealthy individuals but also to their homebuyers and even their own employees, touting returns above 6 per cent. Unlike those offered by banks, the WMPs issued by developers are unregulated.Initially the developers that joined the craze were able to use cash from property sales to pay their WMP investors.
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