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Report: China to tighten daily limits on money-market funds

China is planning to cap the daily limit on how much investors can redeem on money-market funds at 10,000 yuan, the latest in a series of measures by authorities to crack down on financial risk, Bloomberg News reported Feb. 28, citing "people familiar with the matter."

The same restriction will apply to investors who use their assets in money-market funds for payment and consumption, the sources said.

The move expands the government's efforts to reduce financial risk into areas that were once considered less risky. China's money-market funds have grown to a total value of almost US$1.1 trillion by the end of 2017, according to the Asset Management Association of China.

Rob Subbaraman, an economist at Nomura, said in a note that "the financial regulatory crackdown is far from over." China's insurance regulator seizure of control of Anbang Insurance Group Co. Ltd. in February is the latest example in the government's efforts to rein in the insurance sector.

As of Feb. 28, US$1 was equivalent to 6.33 Chinese yuan.