Chinese stocks have been among the smarter bets of the past 12 months. The Shanghai Composite index has done better over that period, in local currency terms, than the S&P 500 or the MSCI World indices.

More rises are possible as a greater weighting of Chinese stocks in global benchmarks unlocks billions of dollars of inflows from foreign funds. But the woes of Noah Holdings, a Shanghai-based wealth manager, serves as a reminder of the vulnerabilities within the country’s financial system.

Not long ago, Noah was an emblem of China’s growing middle class, aiming to service clients with a net worth of at least Rmb1m ($140,000). It had offices in dozens of Chinese cities, a sales force of about 1,500 relationship managers and in Wang Jingbo, its co-founder, a compelling, media-friendly presence.