Chinese WMPs to be unwound under new scheme

Banks in China may have to offer so-called asset management plans instead of controversial wealth management products, after the mainland banking regulator announced plans for a new pilot programme late last week. This means the principal and return guarantees that wealth management products (WMPs) had provided to investors will be removed, as asset management plans (AMPs) do not have such agreements. Under AMPs, banks simply provide investors with a possible range of investment…