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China moves to tighten screws on money market funds

China will further protect investors’ interests through a proposed rule that will tighten its scrutiny over major money market funds, according to reports. Major funds are defined by the rules as those with more than USD31.49bn in net assets with over 50 million investors. On Friday, China’s securities regulator, the China Securities Regulatory Commission (CSRC), said in a statement that the new rules will further strengthen fund managers’ risk-management ability, improve product resilience, and ensure safety and liquidity of investments. Major money market funds must not expand blindly and their managers’ pay must not be linked to the fund size, according to the rules.

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