An article posted on Reuters entitled, "Fitch: Rated Chinese MMFs Weather Volatility" says, "Fitch Ratings says rated Chinese money market funds (MMFs) have so far weathered the tight liquidity conditions in China's financial sector. This reflects the high liquidity and shorter maturity profiles of these MMFs relative to the broader MMF universe in China. Fitch rates four MMFs in China 'AAAmmf(chn)' applying its national scale criteria for MMFs in less developed economies, totalling CNY30.7bn of assets as of 25 June. Volatile interbank market conditions and tight liquidity have exerted pressure on the mark-to-market net asset value (NAV) of many Chinese MMFs which are, by their nature, heavily exposed to interbank markets and short term bond markets. The overnight Shanghai interbank offered rate (SHIBOR), an average of the rate at which large banks lend between them, rose to 5.5% on June 25 2013 from 3.0% on 20 May 2013, down from a high of 13.4% on 20 June. Fitch understands that certain unrated MMFs in China have experienced material mark-to-market declines in their NAVs and at least one unrated MMF has halted redemptions. At this time, the four Fitch-rated Chinese MMFs' liquidity, credit profiles and NAVs are consistent with the assigned rating and any deviations in NAV from par are well within the 50 bps allowed by regulation. This reflects the funds more conservative portfolio guidelines relative to the industry overall and the regulatory minimum. Rated funds limit the average maturity to reset of their portfolios to 75 days or less, as per Fitch's 'AAAmmf(chn)' rating guidelines, against a maximum of 180 days under Chinese regulation.... Conditions in the money markets have stabilized recently. Nonetheless, current liquidity conditions remain tight and, therefore, rated money market funds are keeping their portfolios shorter-dated and maintaining high levels of liquidity to meet potential redemptions without being forced to sell assets into a less liquid market. Redemption pressure, thus far, has not been abnormally high for these funds. While rated MMFs have weathered conditions so far, they continue to face challenging conditions and need to maintain ample liquidity against unexpected redemptions to avoid selling assets and crystalizing losses.... Fitch rates the following Chinese money market funds: China International Fund Management Money Market Fund (CIFM) rated 'AAAmmf (chn)', Gao Hua Sheng Yu Money Market Collective Investment Scheme rated 'AAAmmf (chn)', Harvest Prime Liquidity Money Market Fund rated 'AAAmmf (chn)', and HFT Liquid Money Market Fund rated 'AAAmmf (chn)'."

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