It will be a large part [0] of the portfolios of "wealth management products" [1], which will take large hits, which will then see redemptions from retail becau

It will be a large part [0] of the portfolios of "wealth management products" [1], which will take large hits, which will then see redemptions from retail because these products are sold as being functionally riskless, which will then need to liquidate their other assets, which will per force fall in price, which will... [0] Evergrande is the largest real estate developer and largest user of this type of financing in China, and is reasonably mid tens of percent or higher of some wealth management portfolios. [1] These are investment products which aren't generally sold as such; they're effectively shadow banking. Most users do not understand that they actually are running material capital risk in return for their e.g. 8% annually. There are first-party WMPs and non-first-party WMPs which bundle and resell either bonds or first-party WMPs, etc etc. For more generally, see https://www.reuters.com/world/china/what-are-chinas-wealth-management-products-2021-11-05/ https://www.reuters.com/world/china/what-are-chinas-wealth-m...