Chinese brokerages lure new clients with up‑to‑8.2% annual returns on short‑term wealth products

Several major Chinese securities firms have launched high‑yield, short‑term wealth products aimed at attracting new customers. Products such as Shenwan Hongyuan’s “historical return 8.18% per year” offer a maximum single‑purchase limit of 50,000 CNY and a one‑month term, while others from Guotai Haotong, Ping An and additional brokers provide tiered rates ranging from 6% to above 8% annualised.

The promotions have spurred a surge in new brokerage accounts, with the Shanghai Stock Exchange reporting 2.49 million new A‑share accounts in April (up 29.46% year‑on‑year) and 2.77 million in May (up 77.76%). At the same time, bank deposits have fallen, shrinking by about 2.05 trillion CNY over April–May, as investors shift idle cash into these low‑risk, broker‑subsidised products.

Regulators have warned that the advertised “historical returns” are not guaranteed and have introduced new rules prohibiting deceptive marketing of guaranteed‑return products. The offerings are typically classified as C1 lowest‑risk instruments, backed by the broker’s credit, and each investor may participate only once.