Tianhongyaos 7-day annualized rate of return hit a record low of 10,000 yuan and earned only 6 cents a day

category:Finance
 Tianhongyaos 7-day annualized rate of return hit a record low of 10,000 yuan and earned only 6 cents a day


Tianhongyao Monetary Fund is popular not only because it is the largest Monetary Fund in China, but also because there is an average of one Tianhongyao customer in every three Chinese people.

Tianhong Yaos annual report for 2018 shows that by the end of 2018, Tianhong Yao had a scale of 1.13 trillion yuan, earning a total of 509 billion yuan for investors in the whole year, making an average of 139 million yuan a day and 588 million households.

Recent Returns of Tianhong Yao Monetary Fund

Nevertheless, according to Wind statistics, as of July 9 (as of 10 days of press release, the data are not yet available), 153 monetary funds in the whole market (ABC share consolidation) still had lower returns than Tian Hongbao, accounting for 46%.

There are only six monetary funds with a yield of more than 3%. They are Guofu Daily Income A, Xingye Tianying A, China Post Currency A, Chuangjin Hexin Currency, Guojin Zhongsheng and Great Wall Yield Bao A.

Monetary funds with high 7-day annualized yield

Behind the decline in the yield of IMF is the continuous decline in the interest rate of funds. Jia Zhixiang, head of Tianxiang Gu Fund Evaluation Center (www.thepaper.cn), told reporters that as a monetary fund, earnings are subject to the monetary environment, and real interest rates continue to fall, affecting earnings.

From the investors point of view, Jia Zhi believes that as cash management tools, holders of monetary funds such as Bao should pay more attention to liquidity, followed by earnings.

Interest rates of money funds fluctuate mainly with market conditions. Another fund industry insider also analyzed to the surging journalists that although the central bank has not conducted open market operations recently, it has invested a large amount of funds in the early stage. In addition, the financial expenditure at the end of June is also strong. At present, the funds are very loose.

On July 2, the overnight interest rate fell to 0.7%, below 0.72% of the excess deposit reserve rate. For the first time in history, DR001 and the excess reserve rate were upside down. It is also evident from the full term interest rate that the short-term liquidity between banks is extremely abundant.

The fund industry said that the short-term interest rate downturn caused by abundant funds is the main reason for the recent downturn in monetary fund earnings. In the long run, the tone of the central banks sound monetary policy remains unchanged. It is expected that after the mid-year point, market liquidity will gradually return to a reasonable and abundant level. The gradual bottoming of market interest rates will also lead to a warming of the yield of the monetary fund.

As the yields of IMF continue to decline, the size of IMF is also shrinking.

There are also public funds who believe that in addition to the decline in earnings, the lowering of the financial threshold of banks has also diverted the money fund market substantially.

On September 28, 2018, a new financial regulation for commercial banks was issued. According to the new regulation, the investment threshold of public offering financial products has dropped sharply from no less than 50,000 yuan to no less than 10,000 yuan. Banks have responded quickly to this. The subscription threshold for some financial products has been lowered in batches, and eligible investors can subscribe for some financial products from 10,000 yuan. From the announcement, most of the products lowered the subscription threshold are open bank financial products with strong liquidity, more flexible purchasing and redemption. Industry judges that, from the perspective of yield, the advantages of open-end bank financial products are not very obvious compared with Internet baby financial products, but when purchased on the day, interest can be counted. With the lowering of subscription threshold and the vigorous marketing and promotion of banks, its overnight revenue advantages will be highlighted, and the funds of Internet financial products will be diverted. Source: Wang Xiaowu_NF, Responsible Editor of Peng Mei News

On September 28, 2018, a new financial regulation for commercial banks was issued. According to the new regulation, the investment threshold of public offering financial products has dropped sharply from no less than 50,000 yuan to no less than 10,000 yuan.

Banks have responded quickly to this. The subscription threshold for some financial products has been lowered in batches, and eligible investors can subscribe for some financial products from 10,000 yuan.

From the announcement, most of the products lowered the subscription threshold are open bank financial products with strong liquidity, more flexible purchasing and redemption. Industry judges that, from the perspective of yield, the advantages of open-end bank financial products are not very obvious compared with Internet baby financial products, but when purchased on the day, interest can be counted. With the lowering of subscription threshold and the vigorous marketing and promotion of banks, its overnight revenue advantages will be highlighted, and the funds of Internet financial products will be diverted.