China new AM rules unlikely to quell surging WMPs

China’s new asset management product rules, which propose to restrict financial institutions from using their capital to compensate investors over failed investment products, are set to change how banks issue wealth management products (WMPs). While some experts feel this will cause a diminishment in the country’s wealth management product industry over the long term, several others believe retail investor demand for yield will overcome the rules change, and means that volumes wil…