Beijing, 19th March 2026 – The topic of “71-Year-Old Man in Beijing loses 850,000 RMB from 2 Million RMB Fund Investment” has attracted attention and trended on social media. Recently, the Daxing District Court in Beijing issued a judgment, holding the bank responsible for the full compensation due to violation of the “suitability obligation”.
Reported by the Beijing Daily on 19th March, two years ago, 71-year-old Ms. Wang was recommended a medium-to-high-risk fund product by a wealth manager at a certain bank while conducting business. The manager enthusiastically assured her that the risk was low and relatively stable. After discovering that Ms. Wang’s previous risk assessment at the counter was categorized as conservative, which did not meet the criteria for the medium-to-high-risk fund, the wealth manager instructed her to redo the risk assessment the next day. As a result, her risk profile was changed from conservative to growth, making her eligible to purchase the medium-to-high-risk fund.
Following the manager’s guidance, Ms. Wang used mobile banking to invest 2 million RMB in Fund A. However, after holding Fund A for nearly two and a half years, upon redemption, she found that her principal had incurred a loss of over 850,000 RMB, with a loss ratio of 43%.
This outcome significantly deviated from the initial description of “conservative” and “low risk” by the wealth manager. Ms. Wang believed that the bank’s sales process was misleading and subsequently filed a lawsuit for compensation. The bank argued that the customer’s latest risk assessment matched the product’s risk level and that the purchase was voluntary, thus any losses should be borne by the customer.
The court determined that the bank’s negligent behavior was directly linked to Ms. Wang’s investment losses, holding them responsible for the full compensation. The final judgment ordered the bank to compensate Ms. Wang for her principal loss of over 850,000 RMB.
This news has sparked discussions among netizens.
“Felix98050”: Funds are just so tricky; I once invested over 10,000 RMB and lost over 4,000 RMB. It feels like no matter what you do, you end up getting skinned alive.