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
|Average rate of return for 17 – 23 September (%)
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.