Legal Regulation Of The Risk Of Internet Money Market Funds

Internet money market funds are sold to investors through the Internet platform,and are essentially money market funds.In recent years,more and more investors are keen to invest in Internet money market funds.The total size of funds has been expanding,which contains huge liquidity risks and portfolio risks.The existing regulatory system mainly regulates both investment behavior and redemption system.More regulatory indicators lag behind the development of Internet money market funds.Supervision failed to effectively control the blind expansion of the size of the Internet money market fund,ignoring the quality of fund assets.The longest portfolio period allowed by regulation is not conducive to responding to market volatility.The current ratio of liquid assets requires that it is difficult to deal with the risk of redemption.There are over-regulation issues with daily redemption limits and suspension redemptions.In addition,the amortization cost method may cover the actual risk of the fund.China should establish a regulatory concept that takes into account innovation and security,and gives the board a certain discretion.The specific regulatory channels include the implementation of classified supervision,emphasis on the quality of pledges,the improvement of the ratio of risk reserves and liquid assets,the shortening of the portfolio period and the suspension of redemption periods,the improvement of the criteria for liquidity charges,and the use of floating net value valuation.