Recently, many "Bao fans" have expressed their dissatisfaction with Yu'E Bao.

Because they had just developed the habit of depositing money in Yu'e Bao, and not long after such "good days", "purchase restrictions" came.

From last year, the upper limit of personal accounts remained unchanged at 100,000 yuan, and Yu’ebao stipulated that the total daily subscription amount should be adjusted to 20,000 yuan.

At the beginning of this year, an additional item was added to the "Purchase Restriction Order". Yu'E Bao limits the total daily subscription amount and will be sold from 9 o'clock every day until all purchases are made that day.

Such purchase restrictions continue.

Bao fans have two main dissatisfaction with Yu'e Bao's continued "downsizing": one is that it is becoming increasingly difficult to grab the daily purchase limit.

A fan of Youbao said: "When 9 o'clock comes now, you have to find someone to open the APP, otherwise it will show that the quota for the day has been subscribed. Now if you want to invest money in Yu'e Bao, you have to rely on luck."

In addition to the "purchase restrictions" of Yu'E Bao, the business of automatically transferring Alipay balances to Yu'E Bao has also been stopped.

A Baobao fan once said: "On weekdays, I would transfer any money reimbursed to me by my employer or wages paid to Yu'e Bao. But then the rules changed and we didn't know it. It took several days before I discovered the money."

There was no transfer into Yu'e Bao".

In fact, Yu’e Bao has grown into the world’s largest monetary fund since its establishment in June 2013.

The scale of its funds is also expanding rapidly, and the prospects seem bright.

But now the question arises, why does the Tianhong Fund team insist on reducing the size of Yu’e Bao through purchase restrictions?

First of all, Yu’e Bao has adjusted its trading rules several times before, mainly to control scale.

Although the risk of money funds is unlikely, the small probability of money fund risks has been learned from the past.

Moreover, shadow banking cannot be allowed to grow. This is the lesson left to all countries after the 2008 global financial crisis.

On the eve of the financial crisis, the size of the U.S. monetary base expanded to nearly 4 trillion. However, even an inconspicuous fund loss may trigger a "run", and financial risks are constantly spreading and diverging.

As of the end of the third quarter of last year, Yu'ebao's scale was 1.56 trillion yuan, making it the world's largest money fund.

However, as the scale of Yu'e Bao continues to expand, and Yu'e Bao is a "T+0" monetary fund (can be redeemed at any time), this requires the fund to be ready to handle large-scale redemptions by users at any time, and must have advance replacement

Users have the ability to advance huge amounts of funds. However, once the scale of the currency base increases, more liquidity preparations will be required.

Therefore, appropriately limiting the scale of Yu'E Bao's rapid development is conducive to the smooth operation of Yu'E Bao.

Furthermore, prevent the spread of financial risks.

The investment direction of monetary funds in China is relatively single, with more than 50% of funds invested in bank deposits.

The investment varieties of monetary funds in European and American countries are widely distributed, including treasury bills, certificates of deposit, commercial papers, treasury bonds, etc.

The scale of my country's monetary funds now exceeds 6 trillion yuan, most of which are invested in bank deposits. If its liquidity risk is transmitted to the banking system, the risk may be amplified.

In fact, Yu'e Bao, as a monetary fund, has higher returns than bank deposits, but the risks are definitely greater than bank deposits.

Finally, the current principle of making money in the Baobao category is to pool users' funds together through "gathering sand into a tower" and then negotiating with banks. Not to mention the trillion-dollar fund scale like Yu'e Bao, if you

For a money base with a scale of several billion or even tens of billions, banks will also offer higher interest rates to the money base due to financing needs.

As a result, not only have banks' financing costs increased significantly, but also after the advent of mutual financial management, large-scale relocations of bank deposits have also occurred from time to time in recent years.

Obviously, the development of Yu'e Bao-type commodity base will lead to an increase in bank financing costs and a serious loss of large amounts of deposits.

In fact, the existence of Yu'e Bao actually increases the opportunities for idle funds in my country's financial system, but it does not benefit the development of China's real economy.

Therefore, controlling the scale of Yu'e Bao and promoting its steady development will help China's real economy recover quickly.

In fact, since Yu'e Bao's limit has been "downsized", how to allocate financial assets and what safe and reasonable investment strategies to adopt have been hot topics of discussion online.

For ordinary investors, in the past, they put all their funds in Yu'e Bao, and now if they use all their excess funds to buy stocks, they do not have high reserve knowledge and investment capabilities in this regard.

Therefore, since Yu’e Bao’s purchases were restricted, it has become a trend for a large amount of funds to flow back into bank deposits.

In this regard, we believe that investors can invest in different products based on different risk preferences.

On the one hand, for those investors who are averse to high risks, after Yu'e Bao's purchases are restricted, they can pay attention to more than 300 other money market funds. Their return rates are generally above 5%, and they can be moderately diversified among different fund companies.

invest.

On the other hand, for those more aggressive investors, they can use part of their funds to invest in currency funds, and a small part of their funds to invest in stock funds, and appropriately diversify their asset allocation, so that they can obtain higher investments.

At the same time, investment risks are reduced.

Of course, as global trade conflicts continue to escalate, uncontrollable risks in financial markets are bound to be higher than normal, and investors should pay special attention.

Yu'e Bao frequently adjusts its purchase limit standards, making it more difficult for Bao fans to purchase funds.

In fact, Yu'e Bao wants to control the size of the cargo base for better operations.