Global EditionASIA 中文雙語Fran?ais
    Business
    Home / Business / Technology

    Yu'E Bao cuts maximum personal investment ceiling

    By WU YIYAO in Shanghai | China Daily | Updated: 2017-08-15 07:50
    Share
    Share - WeChat

    Alibaba's Yu'E Bao fund cut its maximum holding ceiling for individual investors on Aug 14. [Photo/VCG]

    Alibaba's four year old Yu'E Bao fund-which in April became the world's biggest money market fund-on Monday cut its maximum holding ceiling for individual investors, in a move analysts said was in preparation for a potential strengthening of rules covering money market funds in China.

    Tianhong Fund Management, which manages Yu'E Bao, said in an announcement that the personal investment quota had been cut from 250,000 yuan ($37,488) to 100,000 yuan.

    The move, the company said, aims to maintain "stable and healthy operation of the fund and protect investors' fundamental profits".

    This is the second time that China's online payment platform under Alipay has cut its maximum holding ceiling for individual investors, after it reduced it from one million yuan to 250,000 yuan in May.

    Yu'E Bao's assets under management totaled 1.43 trillion yuan at the end of June, accounting for about 28 percent of the combined size of China's money market funds market.

    Hua Chuang Securities analyst Qu Qing said it was likely that strengthened policies would soon be implemented to regulate money market funds investing in interbank deposits, which would impact the incomes of money market funds.

    "It is likely that in the near future, money market funds will be further regulated after China's securities regulators and financial market watchdogs tightened management of liquidity," said Chen Yue, an analyst with Shanghai-based Tianyu Investment Consultancy.

    In March, China Securities Regulatory Commission released a circular seeking public opinion on the liquidity management of funds, and money market funds are one of the key areas for liquidity risk management.

    Money market funds, which mainly invest in money market liquidity management tools such as interbank deposits and asset-backed securitization products, have been expanding fast in the past two quarters.

    Relatively high incomes have made money market funds particularly popular, while many other assets look riskier and yield less.

    According to data from the Asset Management Association of China, the size of money market funds grew from 4.03 trillion yuan at the end of March to 5.1 billion yuan at the end of June, representing 26.6 percent quarter-on-quarter growth, and 41 percent higher than that of the end of 2016.

    "Investing in a money market fund feels like you can make money even when you lie down and do nothing at all," said Xie Xiaojun, a 27-year-old investor in Shanghai.

    AMAC data showed the average annualized income of money market funds (seven-day-term) is above 4 percent, while the interest rate for fixed deposits is below 2 percent.

    But their fast expansion and the significant scale of these investments also carried with them liquidity risks, analysts said.

    "The mutual funds market… is not well balanced as money market funds are over-dominating", said AMAC Chairman Hong Lei.

    A liquidity squeeze could happen to money market funds, said Pi Huijuan, an analyst with Fortune Securities.

    "A liquidity squeeze occurred in June 2013 when interbank interest rate spiked to some 10 percent, and money market funds experienced outflows, and suffered a squeeze," Pi said in a research note.

    Top
    BACK TO THE TOP
    English
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    CLOSE
     
    中文字幕乱码免费看电影| 亚洲国产精品无码久久久蜜芽| 久久久久亚洲AV无码永不| 精品无码一区二区三区在线| 亚洲中文字幕无码久久2017| 精品成在人线AV无码免费看| 日韩无码系列综合区| 在线观看免费中文视频| 中文字幕AV中文字无码亚| 中文字幕夜色资源网站| 亚洲AV无码久久精品色欲| 国产福利电影一区二区三区久久老子无码午夜伦不 | 中文无码熟妇人妻AV在线| 亚洲国产a∨无码中文777| 中文字幕日韩精品无码内射| 精品久久人妻av中文字幕| 最新中文字幕AV无码不卡| 日本高清免费中文在线看| 4444亚洲人成无码网在线观看| 无码一区二区三区老色鬼| 中文字幕av无码专区第一页| 最近免费中文字幕中文高清| 一区二区中文字幕 | 日韩中文字幕免费视频| 亚洲AV永久无码一区二区三区 | 在线看中文福利影院| 亚洲JIZZJIZZ中国少妇中文| yellow中文字幕久久网| 亚洲欧美日韩一区高清中文字幕| 中文字幕无码精品亚洲资源网久久| 无码国内精品久久人妻麻豆按摩 | 亚洲AV无码之日韩精品| 日韩精品无码Av一区二区| 亚洲av无码成人精品国产| 亚洲一区无码精品色| 最近中文字幕大全免费版在线 | 亚洲不卡中文字幕无码| 中文字幕人妻无码一夲道 | 中文字幕一区日韩在线视频 | 亚洲av中文无码乱人伦在线咪咕| 亚洲精品~无码抽插|