China Justice Observer

中司观察

EnglishArabicChinese (Simplified)DutchFrenchGermanHindiItalianJapaneseKoreanPortugueseRussianSpanishSwedishHebrewIndonesianVietnameseThaiTurkishMalay

China Regulates Major Money Market Funds

Tue, 08 Aug 2023
Categories: China Legal Trends

On 17 Feb. 2023, the China Securities Regulatory Commission (CSRC) and the People’s Bank of China jointly issued the “Interim Provisions on the Regulation of Major Money Market Funds” (hereinafter the Regulation, 重要货币市场基金监管暂行规定).

In recent years, China’s public fund industry has seen rapid development, with its total assets exceeding 27 trillion yuan and the number of investors surpassing 700 million.

As an inclusive financial product for cash management, money market funds have become indispensiable in the public fund industry due to their high security    , good liquidity, and low investment cost.

At the same time, some money market funds have grown significantly in size or involved a large number of investors, which will adversely affect the financial market if risks occur.

Accordingly, Chinese regulatory authorities have issued the Regulation mentioned above, which proposes more stringent and prudent regulatory requirements for such money market funds.

 

 

Photo by thom masat on Unsplash

Contributors: CJO Staff Contributors Team

Save as PDF

You might also like

SPC Publishes Typical Cases on Public Security Crimes

In April 2024, China's Supreme People's Court (SPC) released five typical cases illustrating crimes against public security, emphasizing clarifications on trial criteria and sentencing principles, featuring a case involving serious injuries from objects thrown off a high-rise building.

Beijing Court Upholds Workers' Right to Offline Rest

The Beijing No. 3 Intermediate People's Court ruled that workers are entitled to overtime pay for “invisible overtime work” conducted via social media outside of working hours, protecting their right to “offline rest”.

China Revises State Secrets Protection Law

China’s national legislature, the National People’s Congress, revised the State Secrets Protection Law to enhance information classification, secrecy in technological innovation, and precise protection of state secrets, effective May 1, 2024.