PBOC official calls for Yu'e Bao reserve deposits

A Chinese central bank official said reserve requirements should apply to money-market funds, including Alibaba Group’s Yu’e Bao, The Wall Street Journal reported, citing a Monday opinion piece in a publication backed by the People’s Bank of China. Sheng Songcheng, the PBOC’s head of statistics, said funds should be parked with the central bank by the commercial banks that hold money on behalf of investment companies. Citing Yu’e Bao, a fast-growing investment fund started by an Alibaba affiliate, Sheng said its annualized return would be reduced by one percentage point if there were a 20% reserve requirement.