Yu’e Bao’s Money Market Funds Breach 2 Trillion Yuan in Scope, Returns Drop Below 2.5%

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Money market funds that are currently available via Ant Financial’s Yu’e Bao platform have seen a sizeable rise in their collective value in tandem with a decline in average returns since the start of the year.

A report from state-owned media indicates that there are currently a total of 21 money market funds which are available via Yu’e Bao, whose collective value currently exceeds 2 trillion yuan.

The money market funds are run by a range of Chinese asset managers including Tianhong Asset Management, Hua’an Securities and Yinhua Fund Management.

The Tiahong Yu’e Bao fund (天弘余额宝) is currently the largest on the platform at 1.04 trillion yuan, yet has seen a sizeable reduction of 600 billion yuan compared to the same period last year.

Boshi Xianjin Shouyi A (博时现金收益A), Hua’an Riri Xin A (华安日日鑫A) and Guobaoli (国泰利) are amongst the fastest growing funds on the Yu’e Bao platform, and all exceed 100 billion yuan in scope.

Figures from financial data provider Wind further indicates that as of 21 April the average 7-day annualised return for Chinese money market funds was 2.46%, for a decline of over 100 basis points compared to the reading of 3.5% at the start of the year.

For the 21 money market funds incorporated into the Yu’e Bao platform the average 7-day annualised return was 2.44%, while for the 21 money market funds available via Tencent’s Licaitong (理财通) platform the average return was 2.48%.

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