When given a choice, investors prefer a sure thing. But for China’s multi-trillion-yuan money-market fund industry, that has become a problem.
The sector has been going through a tough transition in the last few years amid shrinking markets and a government pilot program that seeks to reduce risk by shifting the industry away from conventional funds with guaranteed values toward funds whose worth fluctuates depending on the net value of the assets in which they are invested.
At present, only a few fund firms are permitted to take part in the pilot program. It is currently unclear whether the state plans to extend the initiative to the industry as a whole.
Read the full story on Caixin Global later today.
Contact reporter Lu Zhenhua (firstname.lastname@example.org)