余额宝规模继续缩水 资金管理规模降至2年来最低水平 – TechWeb
What happened: Ant Financial’s Yu’e Bao, the world’s largest money market fund, has shrunk further to around RMB 1 trillion (around $155 billion) as of the end of March, according to quarterly figures from Chinese asset management firm Tianhong, which manages the fund. The approximate 8% drop from the previous quarter brought Yu’e Bao’s asset under management down to a two-year low. However, industry analysts noted that the rate at which the fund is shrinking has slowed, which might mean that the scale of Yu’e Bao is inching toward stabilization.
Why it’s important: Yu’e Bao has been on the Alipay platform since 2013, becoming the world’s largest money market fund in April 2017. According to Yu’e Bao’s 2018 annual report, the platform gained 114 million new users last year. However, its rapid growth invited regulatory curbs due to worries over liquidity risks. Ant Financial-controlled Tianhong has been trying to reduce its reliance on Yu’e Bao and diversify by expanding into the cross-border business.