ANT URGED TO CUT YU’E BAO IN­FLOWS

Con­cerns over fund’s in­flu­ence on China’s in­ter­bank mar­ket

New Straits Times - - Business World -

BEI­JING tril­lion yuan by March, top­ping the size of the JPMor­gan US Govern­ment Money Mar­ket Fund.

Yu’E Bao’s size has spurred con­cerns about its in­flu­ence over the na­tion’s in­ter­bank mar­ket, where most of its money is in­vested, and where bor­row­ing costs have soared to a two-year high amid the govern­ment’s re­newed cam­paign against lever­age.

Moody’s In­vestors Ser­vice said in a note last week Yu’E Bao had been putting more money into longer-ma­tu­rity as­sets and liq­uid­ity risks would in­crease if that trend were to con­tinue.

Yu’E Bao was made avail­able through Ant Fi­nan­cial’s Ali­pay plat­form with no min­i­mum in­vest­ment or time frame, and can be used to make credit-card pay­ments and buy prod­ucts.

About 99.7 per cent of Yu’E Bao in­vestors are in­di­vid­u­als, ac­cord­ing to its an­nual re­port, rather than com­pa­nies or fi­nan­cial in­ter­me­di­aries, as is typ­i­cally the case at other Chi­nese mon­ey­mar­ket funds. Bloomberg

BLOOMBERG PIC

The Yu’E Bao money-mar­ket fund is made avail­able through Ant Fi­nan­cial’s Ali­pay plat­form with no min­i­mum in­vest­ment or time frame.

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