Money market products account for 51% of China's mutual fund assets, and Tianhong's Yu'e Bao makes up nearly a third of MMF assets. Analysts are worried about concentration risk.
The Chinese firm posted faster AUM growth than any other fund house in Asia last year, with a fourfold increase overall and a 13-fold rise in its flagship money market fund. It has several launches planned.
Having doubled its bond fund assets last year, China Asset Management is close to regaining its position as the biggest mainland fund house, which it lost to Tianhong in 2014.
China-listed money market exchange-traded funds are attracting huge inflows as investors seek safe havens. Fortune SG AM has been among the biggest beneficiaries.
The prospect of a US downgrade or even a default is beginning to put pressure on money-market funds and raising the spectre of a liquidity crunch.
BNY Mellon reacts to zero interest rates by offering segregated accounts for cash to institutional clients.