CSRC expands scope of money market funds

The securities regulator on Friday broadened the investment scope for money market funds in an attempt to encourage innovation while maintaining effective risk management.

Deng Ge, spokesman for the China Securities Regulatory Commission, said the CSRC will support the exchange listing and share transfer of money market funds. It will also improve regulation on sales and disclosure of funds that appear online.

Money market funds tend to invest in short-term debt securities that are usually less than a year. They are considered safe options with investors, with low risk but low returns.