One wealth management product advertised annualized returns above 3% but delivered a loss. A “stable, low-volatility” investment began declining the day after purchase. Other wealth management offerings highlighted their strongest short-term yields, making it harder for investors to assess their actual performance.

The cases were among those highlighted in a recent investigation by Chinese state news agency Xinhua, which found that some institutions continue to showcase selective short-term returns despite tighter regulatory scrutiny.

By the end of the first quarter this year, the number of bank wealth management investors in China had reached 148 million, while 48,000 products were available on the market, up 18.23% from a year earlier.

According to Xinhua, while regulators have curbed overt “ranking chasing” — the practice of inflating yields to improve performance rankings — some wealth management institutions continue to rely on selective performance displays.

The probe found that even products from the same bank may use different periods to calculate annualized returns, with some showing one-month figures and others three-month figures, making comparisons difficult for investors.

Lin Xiaoyuan told Xinhua that she bought a three-month holding-period product advertised with an annualized return above 3%. When it matured, the investment had posted a loss.

Another investor, surnamed Chen, said a bank wealth manager promoted a six-month “low-volatility” product as a “stellar performer.” But the investment began losing value on the day his purchase was confirmed and continued declining for the following month.

Xinhua also reviewed product pages on bank apps and found discrepancies between promotional displays and recent performance figures. One product page highlighted a “positive annual return since inception” and a cumulative return of 10.18%, while further data showed annualized losses over both the previous three-month and one-month periods.

An insider at a bank wealth management firm told Xinhua, “If everyone else is showing 4% or 5%, how can we sell ours if we show the real number?”

The probe also found that some banks use inconsistent metrics to display yields, with products from the same institution sometimes showing annualized returns calculated over different periods.

“This kind of selective disclosure is a key reason investors are being misled,” said Wang Pengbo, a senior analyst at market consultancy Botong Analysys. He added that banks often highlight their strongest short-term figures on homepages and pop-ups, making it difficult for ordinary investors to assess a product’s actual risk and return without digging through the fine print.

In December 2025, the National Financial Regulatory Administration issued rules aimed at curbing misleading performance disclosures, including selective reporting and inconsistent presentation of returns.

Such practices violate both net-value management requirements under China’s asset management regulations and the principle of fair market pricing, Wang added.

Regulators have also targeted wealth management products that use short-term returns to influence performance rankings and attract investors. Xinhua reported that selective yield presentation remains an issue despite the regulatory focus.

Experts advised investors to look beyond short-term rankings, examine longer-term performance, compare returns with benchmarks, and consider volatility alongside headline yields.

Editor: Apurva.

(Header image: TotalImage/VCG)