Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (997)	10/13/2003 1:17:15 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China set for money market funds SHANGHAI : China is set to launch its first money market fund by the end of the year, potentially adding to the limited number of investment channels for mainland investors, state press reported. Pending final approval by China Securities Regulatory Commission (CSRC), the launch would open the commercial money markets -- until now reserved for mainland banks -- to investment funds and securities groups. Advertisement Money market funds would allow investment in short-term paper, certificates of deposit, bond repurchase agreements, time deposits and central bank bills, the China Daily reported, citing draft regulations. Traded on secondary markets, money market funds are often considered a highly liquid and safe short-term investment alternative which tend to provide higher yields than bank deposits. Securities companies have been pressing for new investment vehicles since the government announced a massive sell-off plan of state-shares that led to a slump in the domestic stock markets. Tradeable shares in China have lost about one-third of their value since June 2001 to 1.34 trillion yuan (161 billion dollars). "It not only provides a good cash-management product with high liquidity ... but has great significance in enriching the product line in China's fund-management market," the newspaper quoted Jiang Rongfeng, manager at GTJA Allianz Funds, as saying. "The high risk of the capital market has dealt a heavy blow to investors and it has become a common wish among investors to seek safe investments and stable returns," said Fang Fang, a researcher at People's University in Beijing. - AFP channelnewsasia.com