But it also depends on your benchmark. If it is private lending, the annual interest rate of 9% is not very high. At present, bank financing is generally around 3.5% to prevent high interest rate risks. The state stipulates that losses arising from financing and high-interest deposits shall be borne by depositors themselves.
Wealth management products with an annual interest rate of 8% to 9% must be guaranteed, which probably does not exist in China. Because high income corresponds to the principle of high risk. If high returns are accompanied by low risks, depositors will have to put their money in the bank and buy wealth management products, and everyone will have to buy risk-free wealth management products with a yield of 8% to 9%. Most of us won't be able to buy it at all. In fact, the economic growth rate of China fluctuates around 6.5%, which also shows that the return on investment of most industries fluctuates within this range. The high rate of return brings relatively high investment risk. If investors can bear such high risks, they can invest. At present, there are equity funds, trust products, private equity funds, P2P and other wealth management products with annual interest rates of 8% to 9%. , but there is no high-yield product that guarantees the principal. Investment and financial management should be based on their actual financial situation and anti-risk ability to choose products that suit them.
Or it is also possible to diversify investment, that is, divide the funds into three grades: low, medium and high, and buy products with low risk, medium risk and high risk, so that even if there is a problem with high-risk products, the risk loss will be minimized. In the context of the current downward interest rate in the domestic market, if the rate of return exceeds 6%, don't expect to break even. Even for wealth management products with a yield of 4% to 5%, the state has given a transition period of two years, but products with a yield of more than 8-9% need wealth management products with guaranteed capital. This doesn't exist. Last year, Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, warned that efforts should be made to make people realize that high returns mean high risks. If the rate of return exceeds 6%, it is necessary to put a question mark; if it exceeds 8%, it is very dangerous; if it exceeds 10%, it is necessary to be prepared to lose all the principal.