The Wall Street Journal again writes about Chinese money funds and Yu'e Bao again in the new piece, "China Wants Raters to Keep Quiet on Money-Market Fund Sizes." They explain, "A Chinese quasi-regulator told the country's top raters of investment funds to stop publicizing the sizes of money-market mutual funds, in what is being seen as another attempt by Beijing to slow the industry's rapid pace of asset accumulation. The Asset Management Association of China, an industry group supervised by China's securities regulator, the China Securities Regulatory Commission, earlier this month held a meeting with about a dozen representatives from brokerage firms, fund-rating companies and several state-owned newspapers focusing on the securities industry. They were advised to de-emphasize their coverage of money-market mutual funds, according to an attendee." The article adds, "A copy of an internal directive reviewed by The Wall Street Journal told firms that rate and rank investment funds to avoid publishing the asset sizes for money-market funds, which could have the effect of drawing more investors to the largest funds.... Chinese regulators have grown concerned about potential risks from the country's swelling money-market mutual fund industry, whose total assets have surged 54% this year to nearly $1 trillion at the end of September. Many investors have been drawn to the funds's generous yields, which in some cases are close to 4% on an annualized basis.... In October, China’s securities regulator imposed stricter liquidity requirements on funds and deemed some large-scale money-market funds to be "systemically significant." It has also slowed down its approval of new funds. Since October, no new money-market fund has been launched, versus 22 in the third quarter, and 39 in the fourth quarter a year ago, according to data from Wind Information Co."

Email This Article




Use a comma or a semicolon to separate

captcha image

Daily Link Archive

2024 2023 2022
March December December
February November November
January October October
September September
August August
July July
June June
May May
April April
March March
February February
January January
2021 2020 2019
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2018 2017 2016
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2015 2014 2013
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2012 2011 2010
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2009 2008 2007
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2006
December
November
October
September