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.
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Contributors: CJO Staff Contributors Team
