Recently, New China Wealth & Asset Management Inc. is facing troubles as four private placement products from its 'gold diggers' series have defaulted with cumulative amount of 353 million yuan.

ANBOUND’s research team is of the view that the default of the private placement products issued by New China Wealth & Asset Management Inc. shows that many wealth management companies in China are in the business of high interest loans.

As the economy continues to face downward pressure and the business environment for real economy continues to deteriorate, this type of business is very risky.

However, against the backdrop of excess capital, the opportunity for good investment in real estates is getting rarer.