Regulator May Tell Fund Companies to Form Bigger Safety Nets

(Beijing) – The securities regulator is said to be mulling requiring fund management companies to hold more capital in reserve to hedge against risk, a change that may threaten the appeal of popular investment services like Yu E Bao.

The regulator wants fund companies to set aside bigger pools of reserve cash from which investors can be repaid if an investment cannot be repaid in time, a source close to the matter said.