Jane Chen / Shanghai Daily news

Profits of the hot-selling money market funds may slip 0.5 percentage points, resulting from yesterday's fund rate cut by key bankers, the Hexun.com reported. The four banks are the Bank of China, China Construction Bank, the Industrial and Commercial Bank of China and China Agricultural Bank.
China's "Big Four" state-run banks lowered the banking rate of mutual funds under their mandate from 1.62 percent to 0.99 percent.
This could mostly affect MMFs, dragging down their profit rates from the existing approximately 3 percent to around 2.5 percent, analysts expected.
The Big Four manage mutual funds valued at 80 billion yuan, Shi Xiangming, researcher with Tianzhi Fund Management Co Ltd estimated.  If 7 percent of the MMF units are in current accounts, 5.6 billion yuan-valued units will be affected by the new rate and suffer a yield cut of 40 million yuan, he pointed out.

Other banks are remaining cautious about the new rate, but none are following the suit so far.