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Don't Bet China Will Bail Out Wealth Products, Fund CEO Says

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Why China May Not Bail Out Wealth Products

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China’s market for wealth management products is due for some pain as officials tighten regulations on the sector amid their campaign to curb financial risk, says the head of the nation’s third-largest mutual fund manager.

Some holders of the products -- popular among individual investors for their high yields -- hold the “very dangerous assumption” that the government will step in to support WMPs if they get in to trouble, said Tang Xiaodong, chief executive officer of China Asset Management Co., which oversees more than 1 trillion yuan ($145 billion) of investments.