...Assets Reach Record High: Chinese money market funds (MMFs) experienced pronounced expansion from the second half of 2013. By the beginning of 2015 total assets of the 231 active MMFs in the market had reached CNY2.2trn (USD353bn), up 500% from end-2Q13. Slower Growth Likely: Demand for Chinese MMFs will continue to grow in Fitch Ratings' view albeit at a slower pace. It will be more driven by institutional investors and multinational companies operating in China that are more conservative and less yield-hungry than retail investors. MMFs typically provide high liquidity, issuer diversification and attractive yields compared with bank deposits. Varied Risk Profiles: Retail MMFs invest heavily in term deposits and bonds and typically have a longer weighted average maturity (WAM). AAAmmf(chn)-rated funds (and similar) focus more on short-dated assets of high credit quality, notably short-dated exchange-traded repos. This reflects their objective of providing investors with liquidity and principal...
