Yu’ebao, China’s largest money market fund under Alibaba, has decided to scrap the purchasing limit for individual accounts effective April 10.
The daily purchase cap of 20,000 yuan (US$ 2,979) and total holding limit of 100,000 yuan for individual investors will be lifted, according to its statement. It’s the first time in about two years that the fund manager has relaxed its purchase limit rules.
Chinese regulators were concerned about systematic financial risks after Yu’ebao became the world’s largest money market fund after only a couple of years. The fund manager then introduced a string of purchase limits, with the intention of reducing its size.
According to official data, its assets under management lowered to 1.13 trillion yuan by the end of 2018 from 1.69 trillion by the end of March 2018.
Besides the purchasing limits, the fund manager also introduced more money market fund products on its selling platform. Presently investors can now access about 10 money market fund products on its platform.