Original title: China’s Rich Return to Risky ‘Snowball’ Derivatives for Yields
China’s wealthy are once again pouring money into “snowball” derivatives for juicier returns, a year after the regulator curbed the product that was blamed for exacerbating a stock rout. High-net worth investors have snapped up tens of billions of yuan of revamped snowball derivatives since the beginning of this year as interest rates remain low. China Merchants Bank Co. alone has distributed more than 30 billion yuan ($4.2 billion) of such products issued by brokers, according to people familiar with the matter who asked not to be identified discussing private information.