Tag : money market funds

China this month overtook Europe as the world’s second-largest MMF market after the US. What does this spell for investors of these assets?

Tianhong Asset Management’s huge, Alipay-linked money market fund helped drive China's sizzling AUM increase, though regulatory pressures may stifle 2018 growth.

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.

Chinese mutual fund assets nearly doubled last year to a record high of Rmb8.4 trillion ($1.3 trillion), driven largely by money-market products, which analysts say have stabilised the industry.

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.

The Chinese manager is readying an equity fund, but does not plan to bring its Yu’ebao money-market product to Hong Kong. Its vice-general president also spoke about online distribution challenges.

The mainland JV between AMP Capital and China Life has raised $2 billion within weeks from its initial money-market fund, riding a wave of popularity for the strategy.

Agent securities lenders say planned US counterparty credit limits and money-market fund reforms are driving them into high-margin trades.

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.

Regulators should tighten rules for hedge funds and money-market funds, says Karl Dasher, global head of fixed income at Schroder Investment Management.