by Jim Fuell, Managing Director, Head of Global Liquidity, EMA, J.P. Morgan
Domestic firms and multinational companies operating in China have accumulated record levels of cash, despite the rate of economic expansion slowing in the world’s second-largest economy. The growth in cash and cash equivalents held by companies has been faster in Asia than in other regions, with levels peaking in China . For renminbi cash investors, the opportunity set has, in the past, been largely confined to bank deposits. However, the Chinese money market fund industry is proving an increasingly attractive alternative.