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Alipay is not providing a financial service(deposit or lending) like the banks, it merely provides a cheaper and easy-to-use platform for higher return of fund(to invest into some financial product provided by other financial firms). It does not have the responsibility to compensate the customers as it is just a channel provider.
As for WMP, if you would like, you can think it as a not so different product from subprime MBS. Before 2006, subprime MBS was providing high return with almost no loss of capital. I believe everybody knows what happened subsequently.
I can't say the same will happen to the vast WMPs and trust products in China. But no doubt that there is a misprice of risk in WMPs and trust products. How much the damage will be is anyone's guess.
As for WMP, if you would like, you can think it as a not so different product from subprime MBS. Before 2006, subprime MBS was providing high return with almost no loss of capital. I believe everybody knows what happened subsequently.
I can't say the same will happen to the vast WMPs and trust products in China. But no doubt that there is a misprice of risk in WMPs and trust products. How much the damage will be is anyone's guess.