China Economic Review

Retail money market funds see continued, slower growth

China’s retail money market funds are continuing to grow despite falling yields, with assets under management growing more than 13% in the first nine months of the year to RMB2.49 trillion, South China Morning Post reported. Returns for the sector have followed a long downward arc, and on Thursday Alibaba’s Yu E Bao saw yield fall just below 3%, down from a high of 6.76% in January of last year–though still above the 2.25% annual return offered on deposits by China’s big banks. “Investors have become more risk-averse since the stock market crash,” said Li Huang, an associate director on Fitch Ratings’ fund and asset management team in Shanghai.