China's biggest money fund bracing for more liquidity shocks

Beijing

CHINA will face more frequent liquidity shocks this year, according to the manager of the nation's biggest money-market fund, which plans to hold extra cash to protect against the risk of rising redemptions.

The government's efforts to curb risk in the financial system and support the sliding yuan are likely to "over-stretch a rope that's already tight", said Wang Dengfeng, who manages the 800 billion yuan (S$165.7 billion) Yu'EBao fund at Tianhong Asset Management Co.