(Yicai Global) July 15 -- Young Chinese people are interested in buying short-term wealth management products as the majority would be looking to sell their holdings within a year, according to a survey.
Some 72 percent of study participants would keep the product for less than a year, and more than a quarter of them would want to cash out within three months, the Paper reported yesterday, citing a report by the Shanghai Advanced Institute of Finance at Shanghai Jiao Tong University.
The study was done in cooperation with Ant Group Research Institute, polling active users of mobile wallet Alipay.
It is noteworthy that most of the respondents are young people without major disposable income. The biggest group in the study was people born in the 90s, followed by those born in the 80s. More than a third of the participants have less than CNY10,000 (USD1,546) to spend on investments. A bit more than a tenth of all have more than CNY300,000 (USD46,373).
The study shows young people have little patience when it comes to losses. If a product is unprofitable for a year or more, some 87 percent of them would get rid of it. About half of the participants could accept losses lasting three straight months.
Bank deposits, mutual funds, and stocks were the most popular three types of investment vehicles. More than 60 percent of the participants had bank deposits. Moreover, some 44 percent of them had poured money into mutual fund products, and most preferably hybrid funds.
The findings suggest that Chinese people have relatively conservative investing preferences, according to the report.
Still, that doesn't stop them from aiming high. Participants, and especially highly educated ones, had high expectations for investment returns, but the reality didn't always match their predictions, based on the report that had analyzed users' online behaviors.
Most respondents, especially those with little extra cash to spend, said they are not very capable of choosing good wealth management products.
Editor: Emmi Laine, Xiao Yi