China rate cut tipped to hit MMF market

Nov 26, 2014

The meteoric growth of money-market funds in China has slowed and last week's rate cut could dampen that further. Nevertheless observers expect MMFs to remain dominant.

China’s move late last week to cut its lending rate and liberalise interest rates are forecast to dent the popularity of money-market funds, but not enough to prevent their dominance of mainland portfolios.

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