1. According to the Interim Provisions on the Management of Money Market Funds and other relevant regulations, the financial instruments that can be invested by China's money market funds at present include:

(1) fund;

(2) Bank time deposits and certificates of deposit within 1 year (including1year);

(3) Bonds with a remaining maturity of less than 397 days (inclusive);

(4) Bond repurchase with a term of 1 year (inclusive);

(5) Central bank bills with a term of 1 year (inclusive);

(6) Asset-backed securities with a remaining maturity of less than 397 days (including 397 days);

2. Money market funds may not invest in the following financial instruments:

(1) stock;

(2) convertible bonds;

(3) Bonds with a remaining maturity of more than 397 days;

(4) Corporate bonds with a credit rating below AAA;

(5) Short-term credit rating of A- 1 or equivalent by domestic credit rating agencies and short-term financing bonds below this standard;

(6) Securities with restricted circulation.

What is a money fund:

Monetary fund is an open-end fund. According to the types of financial products invested by open-end funds, people divide open-end funds into four basic types: stock funds, hybrid funds, bond funds and monetary funds. The first two belong to the capital market, and the latter is the money market.

Monetary funds mainly invest in short-term financial products with high security, such as bonds, central bank bills and repurchase. , also known as "quasi-savings products". Their main features are "worry-free principal, convenient demand, regular income, daily income and monthly dividend". Money funds only invest in the money market, such as short-term government bonds, repurchase, central bank bills, bank deposits, etc. And there is basically no risk. Its liquidity is second only to bank demand deposits, and its income is calculated every day. Generally, the one-month income is carried forward to the fund share, and the income is slightly higher than the one-year time deposit, and the interest is tax-free. The principal of the Monetary Fund is relatively safe, with an expected annual rate of return of 3.9%. It is suitable for liquid investment tools and a substitute for savings.