Some others said they are reluctant to deal with private banking managers because "they talk about things I don't understand".
Shao Xincheng, a jade dealer in Guangzhou, said he was once terrified by a manager who tried to explain to him how a portfolio may bring a 30 percent annual yield to his investment.
"My manager talked about so many cases in which my yield may vary from 2 percent to 30 percent. He talked for about 30 minutes but I found it was too difficult for me to understand," said Shao.
"To be honest, I am not particularly well educated and I don't want to risk my hard-earned money on something I don't understand. My manager said if unlucky things happen I might lose 10 percent of my 700 million yuan capital," he added.
After that frustrating experience, Shao decided to stick to his old business dealing in jade. He also put some money into real estate, invested some in gold and put the rest in his deposit account to save for his retirement and an overseas education for his son.
"I feel more secure when I can see and touch the thing I bought with my money," said Shao.
The same or similar products and services for VIP clients and private banking clients are found in many banks, said Chen Zhi, a Beijing-based professional investor.
With a master's degree in finance and nine years of working experience in a shareholding bank in Beijing, Chen said he prefers to build up his own portfolio.
"Compared with some foreign banks that have a century of experience in offering private banking services, domestic banks are especially weak in offering structured financing suggestions and building up a tailored portfolio for clients," said Chen.
Feedback
RSS
