Systemic risk refers to the uncontrollable panic flight (selling) of financial system participants in a certain period of time due to various external or internal unfavorable factors, which leads to the increase of investment risk in the whole market. Systemic risk affects all participants in the market and cannot be eliminated by diversifying investment.

Non-systematic risk refers to the risk brought to banks by the change of business strategy of small and medium-sized enterprises with credit. Although supply chain financing is based on the stable cooperative relationship between small and medium-sized enterprises and core enterprises, and based on the real trade background, it reduces the non-systematic risks, but the business decisions of credit enterprises will still form non-systematic risks.

Tips:

1. The above contents are for reference only and do not make any suggestions;

2. Before investing, it is recommended that you first understand the risks existing in the project and have a clear understanding of the investors, investment institutions, chain activity and other information of the project, instead of blindly investing or straying into the capital market. Investment is risky, so be cautious when entering the market.

Response time: February 8, 2022. Please refer to the latest business changes announced by Ping An Bank in official website.