Higher Default Risk In the Economic Downturn
ANBOUND
Against the backdrop of economic downturn, the asset management companies are now in a rather different market environment – the related risks increase sharply while the return of investments decreases, the small scale asset management companies should have clear understanding on this.
Besides, the regulatory departments should tighten the supervision on the financial innovations products and efforts should be stepped up to prevent the risk from being transmitted to other market players, particularly individual investors, otherwise it will lead to more financial market turmoil.