Assets in Ant Group’s Flagship Money-Market Fund Tumble to 2016 Levels

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Assets under management at Ant Group’s money-market fund tumbled after pressure from China’s regulators forced the company to sit out an industrywide boom

HONG KONG—Assets under management at Ant Group Co.’s highly popular money-market fund fell to their lowest level in years after pressure from China’s regulators forced the company to sit out an industrywide boom.

Data for the second quarter, released Wednesday, showed that the Tianhong Yu’e Bao money-market fund had the equivalent of $120.4 billion of assets at the end of June, down 20% percent from three months earlier to a level last seen in late 2016. Last autumn, before Chinese regulators forced Ant to call off, the giant fund had more than $180 billion in assets under management.

Chinese billionaire Jack Ma’s Ant is the majority shareholder in Tianhong Asset Management, the company that manages the eight-year-old mutual fund. The name of the fund means “leftover treasure,” and it is sold on Ant’s ubiquitous Alipay app. Close to half of China’s population was invested in it at the end of 2020, and many have stashed money in their digital wallets in the money-market fund to earn income before spending it.

At its peak in early 2018, the fund managed assets totaling 1.69 trillion yuan, the equivalent of $260.6 billion at present exchange rates, and was. It used to produce returns far in excess of Chinese bank deposit rates by buying bank certificates of deposit and other higher-yielding products.

 

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