Richardcyoung.com

The Online Home of Author and Investor, Dick Young

  • Home
  • How We Are Different
  • About Us
    • Foundation Principles
    • Contributors
  • Investing
    • You’ve Read The Last Issue of Intelligence Report, Now What?
  • Your Survival Guy
  • The Great Reset
  • COVID-19
  • My Rifles
  • Dividends and Compounding
  • Your Security
  • The Swiss Way
  • Dick Young
  • Debbie Young
  • Key West
  • Paris
  • Dick’s R&B Top 100
  • Liberty & Freedom Map
  • Bank Credit & Money
  • Your Survival Guy’s Super States
  • NNT & Cholesterol
  • Work to Make Money/Invest to Save Money
  • Your Health
  • Ron Paul
  • US Treasury Yield Curve

Set Up for Catastrophe? A Third of Chinese Are Invested in One Fund!

March 28, 2019 By Richard C. Young

By Noska Photo @ Shutterstock.com

Back in August of 2016 I wrote to my readers about the Crisis at Vanguard, where funds are getting so big they close to new investors. That doesn’t seem to be a concern for China’s massive Ant Financial Services Group. The Group’s Tianhong Yu’e Bao fund manages 1.13 trillion yuan for 588 million investors. That’s more investors than the entire populations of the United States, Mexico, Canada, and the UK combined. The fund has grown so large, China’s government is worried it could destabilize the country’s economy. Stella Yifan Xie of The Wall Street Journal reports:

The fund, whose name means “leftover treasure,” was started in 2013 and became the world’s largest money-market fund in 2017. It lets users of Alipay invest their spare cash for short periods before they spend their money online. The fund’s seven-day annualized investment yield once topped 6% in its early years, thanks to its investments in bank certificates of deposits and other high-yielding products. Its annualized yield was recently 2.379%, still well above short-term Chinese bank deposit rates.

Many investors in the fund treat it like an online checking account, depositing money at all hours of the day and withdrawing funds whenever they need to spend money. Alipay, which has more than 700 million active users in China, lets people use their mobile phones to pay for everything from bus and taxi rides to meals and shopping online and in stores.

Tianhong Asset Management, an Ant subsidiary that manages the giant fund, said its investor base grew 24% last year, even though the fund’s assets under management shrank by 28% during 2018.

The fund’s size had reached 1.69 trillion yuan at its peak last March, worrying regulators about its potential risk to China’s financial system. Its manager has taken a series of steps to limit inflows and reduce its holdings of hard-to-sell assets, dropping its yields in the process. Alipay also started offering more than a dozen other money-market funds to its users, which has drawn money away from the Tianhong Yu’e Bao fund.

Read more here.

If you’re willing to fight for Main Street America, click here to sign up for my free weekly email.

Related Posts

  • Hedge Fund Fraudster
  • Brexit a Pension Fund Risk?
  • Hedge Fund Body Slam
  • Author
  • Recent Posts
Richard C. Young
Richard C. Young is the editor of Young's World Money Forecast, and a contributing editor to both Richardcyoung.com and Youngresearch.com.
Latest posts by Richard C. Young (see all)
  • Republicans Acquiesce to Democrats’ Abuses of Power - August 10, 2022
  • Pelosi’s Trip a “Pointless Gesture That Brought Us Closer to Military Conflict” - August 9, 2022
  • Who Benefits from and Orchestrated the Trump Raid? - August 9, 2022

Dick Young’s Must Reads

  • Are You Prepared to Run Out of Water?
  • A Look at the Future of Main Street America
  • Your Sheriff Can Thwart Federal Gun Control Efforts
  • Americans Fleeing High Tax States for Growth Corridors
  • “An Epic Struggle Over the Definition of America”
  • Sen. Hawley Makes the Case Against U.S.-China Relationship
  • Robo-Advisors: When You Have a Lot More to Lose than Money
  • DONBAS: Russian Tanks Face Gauntlet of Death from Javelin Wielding Ukrainians
  • Richard Feynman Solved the Space Shuttle Disaster Mystery
  • DIGITAL DOLLAR DOOMSDAY: The Wall Street Journal Is NOT Going to Tell You This

Our Most Popular Posts

  • Who Benefits from and Orchestrated the Trump Raid?
  • The Higher Taxes, Bigger IRS, and More Inflation Act of 2022
  • Did China Buy Land in North Dakota to Spy on Air Force Base?
  • A Conservative Case for Optimism
  • Your Retirement Life: Let the Slow and Steady Be Your Way of LIFE
  • Pelosi’s Trip a "Pointless Gesture That Brought Us Closer to Military Conflict"
  • DESANTIS RESISTS: Suspends Soros-Funded Destruction of America
  • Kamala Harris Facing the Political Opportunity of a Lifetime
  • Immigrants Poised to FLOOD THE BORDER After Democrats Reject Title 42
  • Who Is Alex Jones?

Disclosure

RSS Youngresearch.com

  • PRIMARY RESULTS: Pro-Trump Candidates Clean Up
  • Prices for Electric Vehicles Going UP
  • Europeans Closing Businesses Early to Save on Energy
  • Your Retirement Life: Let the Slow and Steady Be Your Way of LIFE
  • Resilient Nordic Market Spawns Fast Growing Offshoot
  • If the Phone Doesn’t Ring…It’s Me
  • SHOCK: Home Prices FALL in San Francisco as Market Dries Up
  • Federal Reserve Governor Signals MORE Big Rate Hikes
  • DESANTIS RESISTS: Suspends Soros-Funded Destruction of America
  • Despite All the Money Involved, Crypto Is Still a Wild Market

Republicans Acquiesce to Democrats’ Abuses of Power

The Woke Enforcers

BLUE STATE BLUES: There’s No Way Out of This for Democrats

THE NEWS? Believe Nothing, Trust Nothing, and Question Everything

Russian Invasion of Ukraine Speeds of EU Integration of Eastern European Nations

Victor Davis Hanson: How to Bust DC’s Stronghold

Copyright © 2022 | Terms & Conditions | About Us | Dick Young | Archives