New Internet Money Fund Helps Interest Rate Marketization

Referring to the development path of the fund in the US < a href= "http://www.91se91.com/news/index_s.asp" > money market < /a >, combined with the development of China's money market fund and the marketization of interest rate, we believe that China's money market fund is pregnant with the growth and innovation space. With the advance of the new Internet monetary fund represented by the balance treasure, the process of China's interest rate marketization is forming a unique path of "small first and accelerating".

China's money market fund has entered a stage of high-speed and efficient development. The new round of money market funds will develop faster, more convenient and more direct selling media, and the total size of the money market funds will reach 10 trillion yuan in the future.

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< p > combined with the experience of domestic and foreign money market development, we have the following enlightenment: < /p >

< p > first, there is still room for growth and innovation in China's money market fund market. The demand for cash management is another huge cheese for future money market funds.

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Referring to the US market, the money market fund accounts for about 1/10 of the total amount of deposits when the deposit interest rate is relatively large. < p >

At the end of 2013, financial institutions' RMB credit receipts and payments showed that China had 47 trillion yuan in personal deposits and 52 trillion yuan in unit deposits, totaling 99 trillion yuan.

According to the ratio of money market funds to deposits in the process of US interest rate marketization reform, the peak value of China's money market funds is estimated. Assuming the interest rate spreads continuously, only considering the substitution effect of money market funds on personal deposits, the total scale of money market funds can reach up to 4 trillion and 700 billion yuan. If considering the substitution effect of units and individuals, the total scale of money market funds can reach 10 trillion yuan.

By the end of 1 2014, the net asset value of China's money market fund will reach 910 billion 703 million trillion yuan.

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< p > China's money market funds still have room for innovation. In the future, enterprises' money market fund products that meet different subdivision needs are expected to enter a period of rapid development, and the payment function of money market funds needs to be further improved.

Enterprise cash management demand is another huge market for future money market fund development.

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< p > in addition, compared with China's existing mainstream money market funds, the US money market fund also has the functions of issuing checks, pfer payments and other payment functions, and China's money market funds will still have room for innovation in the future.

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< p > Second, under the impetus of money market fund, China's < a href= "http://www.91se91.com/news/index_cj.asp" > interest rate < /a > marketization process is forming a unique path of "small first and accelerating".

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< p > the interest rate liberalization reform in the United States follows the principle of "first long term, short term, big first and small amount". In 1961, it first launched large scale negotiable certificates of deposit for individuals and enterprises, and took the first step in the market-oriented reform of large deposit interest rates. After 1972, money market funds emerged and grew rapidly, and in essence, they realized the marketization of interest rates for small and current deposits.

At present, the large negotiable certificates of deposit issued by China are limited to institutional investors in the interbank market. The large scale deposits of individuals and enterprises have not realized the marketization of interest rates, and the rapid development of money market funds has taken the lead in realizing the marketization of interest rates for small funds.

China's largest money market fund "balance treasure" holds only 4307 yuan per capita, indicating that China's money market funds are typical small current savings substitutes.

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In addition to P, China's interest rate liberalization is also more efficient.

The marketization of interest rate in the United States took more than ten years. The main reason is that the regulatory policy adjustment process is complex and time-consuming.

At present, China's regulatory authorities, as a whole, have a more open and tolerant attitude towards Internet finance, and active responses from banks will further speed up the marketization of interest rates.

Therefore, in the process of interest rate liberalization, money market funds play the role of "parallel line products" in deposits.

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"P > third", China's money market fund has entered a high speed and efficient development stage. The new round of money market fund has developed faster, more convenient and more direct sales medium.

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Under the environment of cross convergence between the Internet and the financial industry, the money market fund design is more scientific, more convenient and more functional, and has entered a new round of rapid development. < p >

The fourth quarter of 2013 showed that there were 153 money market fund products, with a net asset value of 883 billion 200 million yuan, accounting for 30% of the total fund size.

Among them, the product of "balance treasure" has surged to 400 billion yuan in the 8 months after its establishment, accounting for 40% of the total size of China's money market fund.

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Compared with the rapid development of the first two money market funds, the development of money market funds with the Internet as the main channel presents new characteristics. < p >

First, the speed of development is faster.

The share of money market fund products in the total assets of the fund industry increased from 14% in 2011 to 30%, double in two years.

Secondly, the degree of convenience is even higher.

In the past, money market funds were purchased at 1000 yuan, and the arrival time of redemptions ranged from T+1 to T+4 days.

Driven by the Internet finance, the subscription threshold of money market funds is as low as 1 cents; fund companies arrive in real time through the form of T+0 and so on, so as to truly realize the cash substitution function of money market funds; expand the new payment function of credit card repayment, interbank pfer, online shopping payment and so on.

Thirdly, the selling medium is more direct.

Traditional money market funds are mainly purchased by banks and third party financing, and investors buy less.

Since 2012, fund companies have attached great importance to the construction of direct selling platform based on the Internet. The new direct selling channels such as the official website, the mobile client and the third party payment platform are on the line.

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< p > in addition, we have two suggestions for the development of China's a href= "http://www.91se91.com/news/index_cj.asp" and the IMF /a < < /a >: first, money market funds are mostly used for daily cash management, or as temporary capital for the conversion of different investment varieties, Jin Cunfang is often regarded as a safety product by investors but ignores risks.

Money market fund managers are faced with the risk of investors' redemption. They have higher requirements for liquidity management. We should pay attention to control period mismatch exposure and fully estimate possible liquidity gaps.

Second, in the context of the rapid expansion of money market funds, savings deposits are pformed into interbank deposits, and the "loan to deposit ratio" standard is becoming an impossible task.

Banks are faced with pressure from loan to deposit ratio, no matter whether they allow deposits to move or deposit money into cooperative money market funds.

If we continue to stick to this index, we will further promote the bank's distorting regulatory arbitrage.

It is suggested that a more dynamic net stable financing ratio (NSFR) and a comprehensive mobility assessment (CLAR) should be introduced gradually to replace this static index.

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