China Issues Rules for Giant Money Market Funds
China’s financial regulators Friday published long-awaited rules to regulate the country’s $1.6 trillion market for money market funds, setting requirements on how major players can manage and invest the money.
The five-chapter regulation jointly published by the China Securities Regulatory Commission and the People’s Bank of China stipulates that money market funds with net assets of more than 200 billion yuan ($29 billion) or more than 50 million investors in 20 consecutive trading days should comply with the requirements for investment, leverage ratio and risk reserves. The rules came more than a year after regulators released a draft version for public comment.
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