Six-fold surge in China's money-market funds

The 18 months through December 2014 saw assets invested in China’s money-market funds surge six-fold to 2.2 trillion RMB (US$351.3 billion) principally driven by retail investors, Bloomberg reported, citing Fitch Ratings. The five largest asset managers held over 50% of total assets, including Yu’e Bao, which was sold by Alibaba Group Holdings (BABA.NYSE). The analysts continued that investment in such funds will likely continue, albeit from more conservative, institutional investors as the People’s Bank of China lowers interest rates following the lowest economic growth in 24 years.