The Beijing News, 8/14/17
Money market fund product Yu'e Bao, operated by a subsidiary of financial services company Ant Financial, today lowered the maximum personal investment limit from RMB 250,000 to RMB 100,000, in order to ensure product stability. Accounts with deposits exceeding RMB 100,000 will not be affected.
After the new limit takes effect, users will not be able to add additional funds to their Yu'e Bao Money Market Fund account if the balance reaches or exceeds RMB 100,000.
Yu'e Bao Money Market Fund in May this year already reduced the personal account balance limit from RMB 1 mln to RMB 250,000. A representative for Yu'e Bao said that it does not have plans to reduce the balance limit further in the future.
Ant Financial, an affiliate of Chinese e-commerce conglomerate Alibaba Group (NYSE: BABA), currently controls a 51% stake in Yu'e Bao operator Tianhong Asset Management. As of Q1 2017, Yu'e Bao Money Market Fund had more than 300 mln users.
Editor's Note: For more information on this topic, please see "Yu'e Bao Lowers Maximum Personal Investment Limit in Money Market Fund to RMB 250K," MD 5/27/17 issue.