ANT URGED TO CUT YU’E BAO INFLOWS
Concerns over fund’s influence on China’s interbank market
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
The Yu’E Bao money-market fund is made available through Ant Financial’s Alipay platform with no minimum investment or time frame.