The Reference News recently published the Japanese Economic News, which reported that "investment funds avoid risks". The article is summarized as follows: The tendency of the world's investment funds to avoid risks has been strengthened. Money flows into the money market fund (MMF), an investment trust with high security. According to the statistics of emerging market securities fund research company, an American research company, as of November 16, the net inflow of MMF in the second half of 2022 reached 257 billion dollars. Compared with the stock fund with an inflow of US $36.4 billion and the bond fund with a net outflow in the same period, its popularity is obvious. According to the statistics of Crane Data, the average yield of major MMFs has risen from 0.02% at the end of February to 3.5% in the near future. Peter Crane, the president of the company, pointed out that "the deposit interest rate of banks and securities companies is still very low, and the capital is attracted by MMF." The Federal Reserve is prepared to further raise interest rates. It is expected that the MMF yield will be close to 5% and the capital will accelerate its inflow. The stock market fell sharply this year, and the bond price fell, because the US and Europe raised interest rates, and there is no sign of the end. It is also an important factor for investors who want to avoid risks to invest in MMFs. The concentration of funds to MMF will bring about the risk of destabilizing the financial system. In sharp contrast to the increase in MMF balance, the capital level of the banking industry is declining. The short-term financial market with banks as the main participants is tight, and interest rates may soar. As a part of the financial tightening policy, the Federal Reserve is promoting quantitative tightening, while seeking to reduce the funds circulating in the entire financial system. What market people are wary of is that the situation will repeat in the autumn of 2019. At that time, the Federal Reserve's asset compression led to a shortage of bank funds, and short-term financial market interest rates soared. Japanese financial institutions in New York pointed out: "It is still unclear how much reserves banks need to have in order to make market transactions go smoothly." (Liu Xinshe)