Generally, there are two kinds of wealth management products we buy from commercial banks. One is that commercial banks issue and sell through independent corporate companies (i.e. financial subsidiaries) or professional departments, and some are issued by formal financial institutions and sold by banks on a commission basis. Especially under the new regulations of asset management, financial management and management measures of financial subsidiaries, the financial management business of commercial banks will be gradually divested to the financial subsidiaries of banks.
The bank's wealth management products belong to off-balance sheet assets. That is, it is not included in the balance sheet accounting, so even if the bank goes bankrupt, the liquidation object will not recover the wealth management products, so the bank bankruptcy has little impact on the safety of wealth management products. This is equivalent to all of us entrusting money to the bank, which manages the investment on our behalf and earns the difference. The risk is borne by ourselves and does not affect the bank's assets and liabilities, so this part of the money is not included in the bank's balance sheet. The bank will terminate the wealth management products in advance, which means that the money you invested will be redeemed in advance, and the principal and interest will be liquidated, but the profit and loss cannot be guaranteed.