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.