China’s $9 Trillion Moral Hazard Problem Grows Too Big to Ignore

China may be about to embark on its most ambitious — and perilous — campaign to convince investors that they can’t depend on a bailout during the country’s next market upheaval. In a rare show of cooperation, the nation’s main financial regulators are drafting new rules for asset-management products that aim to make clear the investments have no government guarantee, people familiar with the matter told Bloomberg News on Tuesday.