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.
