In China, the vast majority of household assets and wealth are in the following three categories: bank deposits, wealth management (investment and wealth management, etc.), and real estate. Each of the three types of asset wealth has its own characteristics, and I will only talk about it from the perspective of income and risk. Most ordinary people seem to have a high demand for security. From the perspective of the deposit insurance system, as long as they are covered by the deposit insurance system, the security of deposits in large, medium and small banks is the same. The Regulations on Deposit Insurance, promulgated and implemented in 2015, stipulate that all deposit-absorbing banking financial institutions such as commercial banks, rural cooperative banks, and rural credit cooperatives established in China must be insured. The deposit insurance system was established in the form of legislation. The central bank has led the establishment of deposit insurance management to manage the deposit insurance premiums paid by banks and other insurance institutions, and invest the money in assets with very high credit ratings such as treasury bonds and central bank bills. All the income generated from the investment is included in the deposit insurance**, and in the event that the bank needs to redeem the depositor's deposit, the deposit insurance** is the redemption of the funds**. That is to say, regardless of the size of the bank, as long as the resident is a deposit in a bank established in China, the maximum repayment limit for the same depositor's deposit in the same bank is RMB 500,000, including principal and interest, and the part exceeding the maximum repayment limit shall be compensated from the liquidation property of the insured institution in accordance with the law. This means that even in the event of an extreme situation, when the bank goes bankrupt or other risk situations, the part exceeding the maximum payment limit of 500,000 yuan can be reimbursed from the liquidation property of the insured institution. A typical case is Baoshang Bank, which went bankrupt in 2019, and although Baoshang Bank has a huge insolvency gap, it fully guarantees personal savings deposits in the final risk disposal. Therefore, theoretically speaking, from the perspective of the deposit insurance system, the safety of deposits in large, medium, and small banks is the same.
However, theory and practice, system and operation are always two different things. In mid-April this year, a thunderstorm involving 40 billion deposits broke out, and four village and township banks in Henan and two village and township banks in Anhui suddenly issued announcements to close online funding channels and suspend online banking and mobile banking services. If it is stored at the local counter, it can be taken at the counter, but if it is stored online, it cannot be withdrawn offline; Depositors from other places can't take it. According to the first notice, it is the bank's internal personnel who use real information to establish an online system, absorb customer deposits through a third-party platform, and then transfer customer funds to the account of the controlling shareholder, and then roll the customer funds out of the country. According to the official, it was a criminal gang that began to commit crimes in 2011. A crime that lasted more than a decade? How did you evade layers of supervision and transfer out of the country? The people ran away, and the money was gone? All kinds of questions may become inexplicable. The reality is that the depositors' money deposited in the bank cannot be withdrawn, and there is a risk, what does this mean? It shows that although the security of deposits in large, medium and small banks is the same from the institutional and theoretical levels, the risk degree of deposits of large, medium and small banks is different from the level of management, supervision and operation.
There are more than 4,600 banking financial institutions in China, and we are more familiar with the seven large state-owned national banks of China, agriculture, industry, construction, communications, and postal savings, plus 12 national joint-stock banks, including China Merchants Bank, Shanghai Pudong Development Bank, Ping An Bank, China Everbright Bank, Industrial Bank, Minsheng Bank, China CITIC Bank, Huaxia Bank, Guangfa Bank, Bohai Bank, Hengfeng Bank, and Zheshang Bank. The second echelon is various local banks, such as: Bank of Beijing, Bank of Shanghai, Bank of Tianjin, Bank of Zhengzhou, Bank of Qingdao, Bank of Ningbo, Bank of Jinan, Bank of Rizhao, etc., with a total of more than 130 city commercial banks. The third echelon is more than 1,700 rural commercial banks and rural cooperative banks. There are nearly 20 private banks, such as: Shenzhen Qianhai WeBank, Zhejiang MYbank, Shanghai Huarui Bank, Wenzhou Minshang Bank, Tianjin Jincheng Bank, Chongqing Fumin Bank, Sichuan Xinwang Bank, Jiangsu Suning Bank, Hunan Sanxiang Bank, Anhui Xin'an Bank, Fujian Huatong Bank, Wuhan Zhongbang Bank, Shandong Weihai Lanhai Bank, Jilin Yealink Bank, Beijing Zhongguancun Bank, Liaoning Zhenxing Bank and so on. There are more than 2,400 village and township banks and rural credit cooperatives in the fourth echelon. In addition to these commercial banks, there are three other policy banks in China's banking system: the China Development Bank, the Export-Import Bank of China, and the Agricultural Development Bank of China. Nearly 40 foreign banks, such as HSBC, Citibank, Standard Chartered Bank, etc. In China, the leader of all banks is the People's Bank of China, that is, the central bank, which is the leading institution of China's banking industry. For ordinary people, we do not have direct contact with policy banks, foreign banks, and the People's Bank of China. We usually do business with commercial banks. The security of bank deposits we are talking about is also for these commercial banks.
The central bank has a rating for banks and other financial institutions. According to the central bank's risk rating, it can be divided into 11 levels (1 10 and D). The higher the level value, the higher the risk. Level 7 and below, it can be considered to be within the security boundary; Level 8 or above is considered a high-risk institution. The ratings of urban commercial banks, rural commercial banks, rural cooperative banks, and village and township banks are widely distributed, ranging from 2 to 10. The risk level of private banks is 3 7 levels, which belongs to the medium and low level, and there is no high risk in general, but the strongest private banks are not as good as the strongest city commercial banks. According to the central bank, there are more than 400 banking and financial institutions in the country that are above level 8 and are high-risk institutions. The number accounts for about 10%, and the lowest level reaches level 10. Indicate that there are a considerable number of high-risk institutions that require caution or attention. The number of high-risk institutions varies from region to region. However, from the perspective of high-risk institutions, the fourth echelon of village and township banks and rural credit cooperatives account for the largest proportion, so we need to be extra cautious.
As I said earlier, from the perspective of the deposit insurance system, as long as they are covered by the deposit insurance system, the security of deposits in large, medium and small banks is the same. Even if most of the risks actually come from the management and operational risks, then avoid depositing in the third-party platform** bank. To put it bluntly, do not make deposits through the bank's non-proprietary online platform, that is, a third party. When you go to the bank counter, don't look at anything else, the fundamental goal you pursue when you choose bank deposits is security, then don't care what other products they recommend to you will have a high return, or why a bag of rice and other gifts and do something else, the standard deposit certificate such as a certificate of deposit is in hand, just save this. If you want a slightly higher interest rate and money, then deposit a large certificate of deposit (when depositing a large amount of a certificate of deposit, the same bank has a single transaction of less than 500,000). Because you choose to deposit money in the bank, your purpose is security, and you want to be safe, and you don't have to worry about getting a good night's sleep. However, under the continuous large-scale release of water in the world, the speed of inflation will be very fast, and the yield of bank deposits cannot outperform inflation. If your goal is profitability, don't go to the bank, you can buy, invest and manage money, etc., of course, this needs to bear the corresponding risks, and you can't pursue security here. Sometimes the difficulty of choosing is not the choice, but the fact that you "want both, want, and want", which is difficult.
To invest in financial management or ** tickets, which requires you to have certain professional skills and knowledge, ordinary people are lacking in this regard, and there is no corresponding knowledge reserve and ability, so it is not recommended for you to do it. The characteristic of ** is "one earn, two draws and seven losses", which is the iron law of **, and you will understand it after studying and studying. In **There is money, but ordinary**, you can play it as a fun, and if you want to get high income and make a fortune here, don't dream too much. About financial management and **, it's a bit embarrassing right now. Bank wealth management, the rate of return is higher than the deposit interest, but it has to bear uncertain risk factors. Whether it is a**type**, mixed type**, currency**, etc., there are many uncertain influencing factors, but in fact, it is so big that it follows the economic cycle, which is the general trend, and many times it is not whether the manager is bullish.
Finally, let's talk about real estate as a form of wealth. Compared with deposits, investment and financial management, etc., from the perspective of safety and stability and long-term returns, the investment cost performance of real estate assets is much higher, and the timeline is elongated to see that it is an asset that can outperform inflation, and the security is relatively high, but the liquidity will be weaker, and the de-conversion cycle will be longer. In the case of the Great Recession, you should pay attention to your cash flow when allocating real estate assets, keep enough anti-risk funds, evaluate your future cash flow, and have a safe and stable cash flow, so as not to lose your property due to loan breakdown. Nowadays, real estate has accounted for a high proportion of Chinese's family asset wealth. In many first- and second-tier cities, your family assets are in the millions, and some are more than 10 million, and at first glance they are just real estate. How much cash do you have in your hand, you are really worried about the last meal, the next month's mortgage, the child's milk powder money, etc. This situation is not isolated today, but universal. With a net worth of millions, is he a rich man or a poor man? There are different opinions, so I will not discuss them here. From the perspective of wealth management, real estate is not strictly a kind of "intergenerational wealth". This kind of asset wealth will not last for three generations, so don't think about it forever. Real estate is just your current asset wealth, which is determined by China's fundamental system and the underlying logic of real estate. Wealthy people do not allocate assets overseas or buy houses overseas because they don't have houses at home. For ordinary people, although real estate is not an asset wealth that can be passed down from generation to generation, it is really your real and effective asset wealth at the moment.