Chinese MMFs seen shrinking further due to new rules

New rules to control mutual fund liquidity risks in China are set to hit the country’s money market funds (MMFs) hardest by making it tougher to attract outsourced bank money with bespoke products. Issued by the China Securities Regulatory Commission (CSRC) and due to come into force on October 1, the regulatory overhaul comes after the 2015 stock market crash and last year's bond market rout triggered heavy redemptions, Rachel Wang, director of Chinese fund manager research at Mo…