The chairman of the Industrial and Commercial Bank of China (ICBC), the world's largest bank by assets, said Thursday that it would not compensate investors for losses related to a fund product it marketed to them.
Jiang Jianqing told CNBC that the event can be considered educational, with investors learning the lesson of moral hazard in financial markets.
"ICBC will not rigidly pay out the funds to the investors," he said while attending the World Economic Forum in Davos, Switzerland. "We do not assume that rigid responsibility."
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"I believe this incident has been a very good opportunity to educate the investors, to educate the trust companies and to educate ICBC," Jiang said. In the future, he added, if customers buy "wealth management products or other products they must see clearly the risks."