Average Return on Chinese Money Market Funds Drops to 3.356%
Returns on a range of fixed-income assets in China have seen ongoing declines as market liquidity becomes looser.
According to a report from Cebnet.com.cn ample market liquidity has led to declines in returns on money market funds, bank wealth management products (WMP) and other fixed income assets.
|Money market funds||Bank wealth management products||Insurance category investments||Bank deposits|
|Average rate of return for 17 – 23 September (%)||3.356||4.054||3.753||3.111|
Analysts expect the decline in returns to continue,and money market funds to enter a period of low rates. As the market becomes more risk-averse, however, the volume of money market funds is also expected to post an increase.