Assets under management by Chinese money market funds have risen to a record high, on the back of demand from savers for better investment returns.
Data from the China Banking Association indicates that assets managed by money market funds rose to more than 6.8 trillion yuan (approx. USD$1 trillion) by the end of November, for a year-on-year increase of 2.52 trillion yuan.
Money market funds also account for a record high percentage of all mutual funds, at nearly 60%.
The growth in money market funds has also driven a 24.6% expansion in total mutual fund sector assets during the first 11 months of 2017, to 11.41 trillion yuan in total.
China’s money market fund sector, which is currently the world’s second largest, has enjoyed roaring growth in recent years on the back of demand for secure, high-return investments.