Date
19 October 2017

CSRC warns of risks in money market funds, paper says

The China Securities Regulatory Commission has warned of risks linked to money market funds, which have mushroomed to have close to 1 trillion yuan (US$163.90 billion) in total assets under management, the China Securities Journal reported Monday, citing an unnamed source. The commission met with major fund companies and discussed the risks of such funds given that 90 percent of their assets are put into banks. The regulator was looking for feedback on the prospect of letting funds such as Alibaba’s Yu’E Bao invest in short-term bonds as a way to diversify risks arising from a single investment tool, the paper said.

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