Ant Financial’s Yu’E Bao fund has shrunk to its lowest size in over two years as the government looks to downsize the fund due to systemic risk issues; the shrinking of the fund was due to pressure from the government for Ant to begin shifting users away form the product and monetary easing from the PBoC which has made money market funds less attractive; Yu’E Bao also now offers 13 other money market fund products from outside fund managers as they comply with pressure to move users into different funds to spread the risk; analysts don’t believe this will overall hurt Ant Financial very much as there is a belief that the fees garnered from the fund are minimal to Ant’s bottom line. Source.
