The China Securities Regulatory Commission (CSRC) is contemplating to further tighten screws on the country’s money market fund (MMF) sector by bringing greater risk control, liquidity and information disclosure measures, among other factors, Asia Asset Management? has reported.
The report says that the regulator has proposed measures to prevent the market from derailing, outlining a number of new controls and regulations.
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The measure include widening the funds’ investment scope, strengthening risk control and liquidity management systems, and tightening information disclosure, stress testing, and supervisory requirements.
The regulator will carry out public consultation on the new rules until 14 June 2015.
The move comes as China’s MMF market has seen its total AUM surge from around RMB304bn ($48.64bn) in mid 2013 to RMB2.5 trillion at the end of April this year.
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