ICBC offers bailout for troubled trust product

Investors in a troubled Chinese wealth management product that was about to default have been given a chance to recoup their money, Bloomberg reported, citing an investor. Rights in the US$496 million (RMB3 billion) product issued by China Credit Trust can be sold to unidentified buyers at a price equal to the value of the principal invested. The offer was made by Industrial and Commercial Bank of China (1398.HKG, 601398.HKG) and means that the first default on such a product in China is likely to be averted. The bailout may encourage risk-taking by wealthy investors in China’s US$1.7 trillion trust industry.