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New Rules, New Opportunities for Money Market Funds in China

New Rules, New Opportunities for Money Market Funds in China

An Executive Interview with Kheng Leong (KL) Cheah, Head of J.P. Morgan Global Liquidity Sales, Asia Pacific

In this month’s Executive Interview, KL Cheah, Head of J.P. Morgan’s Global Liquidity Sales for Asia Pacific talks to Helen Sanders, Editor, about the recent regulatory changes for China on-shore RMB money market funds (MMFs) and the impact on corporate cash investors in China.

What particular investment considerations are important for corporate investors in China?

Unlike their retail counterparts, corporate investors tend to look for investments that support their wider business needs rather than solely focusing on high returns. In addition, corporate treasurers view both liquidity and strong credit quality as an important consideration in their investment portfolio; in order to readily provide for day-to-day business operating costs, and to best preserve capital, respectively. Hence, corporate treasurers actively seek investments which allow flexible liquidity, as well as effective credit risk management.