① Credit risk

s s sMost financial products are non capital guaranteed, and the bank does not assume the responsibility to guarantee the principal or expected income in name. Although the bank basically implements the implicit capital guaranteed policy at present, the position of financial products in the bank's liabilities is not clear in law. In case of extreme circumstances, such as the unfortunate reorganization or bankruptcy of a local bank, it is difficult to guarantee the rights of financial product investors, May rank behind all other creditors. Of course, the probability of such a situation is very low.

② Investment risk

The income of wealth management products comes from the investment income of banks on wealth management funds, which also contains corresponding investment risks. For linked structured products, the performance of the linked subject matter directly affects the income of financial products. Among the non structural products, the investment risk of products invested in the direction of stocks is relatively high, and their returns are closely related to the volatility of the securities market. The risk of investing in fixed income products such as credit assets, bills and bonds is relatively low, which mainly depends on the matching of various assets in the asset pool.

③ Exchange rate risk

For currency holders, the exchange rate risk of foreign currency products cannot be underestimated, especially in the context of continuous appreciation of the domestic currency. The data shows that since 2010, most foreign currency financial products have experienced exchange rate losses at maturity, with an average annual loss of 3.3%, of which the average annual loss of euro products is 5.1%. In the case of turbulence in the foreign exchange market, investors should consider temporarily avoiding foreign currency financial products.

④ Interest rate risk

You may ask why there is interest rate risk when the interest rate of financial products is basically fixed? It is precisely because the interest rate is fixed that there is interest rate risk. For example, the expected yield of financial products when issued is 5%, which is equal to the market interest rate. If the bank raises the interest rate and the market interest rate rises to 6%, the interest rate of financial products will be lower than the market rate of return, which is also an investment loss, because the level of interest rate is directly related to the rate of return of financial products. In addition, tight market liquidity will also lead to rising market interest rates, increasing the interest rate risk of wealth management products. The interest rate risk is positively related to the term. The longer the term, the greater the interest rate risk, because the possibility of interest rate changes and the range of possible fluctuations are greater.

⑤ Policy risk

The policy guidance of CBRC has brought great uncertainty to the development of financial products.After the stock market foam burst, the stock products declined sharply. After the economic crisis, the government launched a series of economic stimulus policies, which led to the expansion of credit scale. Financial products invested in credit assets soared, becoming the largest category of products in the market, accounting for more than one-third of the market share. The rapid expansion of credit financial products has attracted the attention of regulatory authorities.

⑥ System risk

At present, the bank collects all wealth management funds into a fund pool for unified investment. The investment risk of a single product cannot be measured and controlled separately, so the problems of some assets are likely to affect other wealth management products. However, interbank deposits, bills and other assets account for a high proportion in the capital pool. If the total scale of the financial product market is too large and the funds held by banks are too large, the risk may be transmitted to the entire banking system, which is called system risk.

Conclusion

If you want or have invested in the bank's financial products, you must keep the above points in mind. If you understand the advantages and disadvantages of financial products of investment banks, you can certainly gain a lot of wealth from them.

（Writer：Lorik）