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Individual Chinese investors should seek advice from professional wealth managers: expert

By Qiu Quanlin in Guangzhou ( Updated: 2016-08-19 17:32

Individual Chinese investors should look for more advice in asset allocation from professional wealth management organizations, as the global economic downturn has posed threats to their financial safety, according to experts.

"Chinese investors need to adopt a cautious, or defensive, approach in asset allocation as the global economy and the domestic financial market remain uncertain," said Wang Guizhi, vice president of China Guangfa Bank.

The People's Bank of China, China's central bank, has lowered interest rates six times since November 2014 and slashed the reserve requirement ratio (RRR) for banks.

"At such a time when interest rates and the reserve requirement ratio are cut, Chinese investors have seen lower profits from buying financial products," said Wang.

Also, a series of international events, like Brexit, are among the factors that are likely to affect investors' interests through causing uncertainty in the global financial market, according to Wang.

"Individual Chinese investors, therefore, are strongly advised to look for professional advice from wealth management organizations," said Wang.

Wang made the remarks during a recent business forum featuring wealth management in Guangzhou, the capital of Guangdong province.

According to Wang, China Guangfa Bank has developed a team of professional managers to help Chinese families deal with their assets over the past few years.

"We will look for more professionals to help manage customers' wealth as the global financial market has become more uncertain," said Wang.

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