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Alipay's Yu'ebao   [Copy link] 中文

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Post time 2014-1-23 23:36:54 |Display all floors
This post was edited by 468259058 at 2014-1-23 23:37

Alipay, China’s largest third-party payment platform, has introduced a new funding service, called "Yu’ebao". The service gives Alipay’s near-800 million users the option to directly invest with the private TIANHONG Fund, using spare cash from Alipay accounts.

Alipay, which is China’s version of Paypal says it has a large amount of spare cash resting in the accounts of hundreds of millions of Taobao users. The number of people investing in the fund, has exceeded 1.5 million since its trial launch on June the 13. The annual earnings rate for investors in the fund is around three to four percent.

That’s compared to normal bank interest rates of 0.325 percent. The minimum threshold for fund investment is set at one Yuan, that’s far lower than normal investment thresholds. Users can redeem funds at any time, and the capital can be used directly for online payments or transferred without redemption.

Alipay pledges higher investor returns
06-25-2013
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Post time 2014-1-23 23:38:36 |Display all floors
Baidu launches online wealth management platform
(Xinhua)
Updated: 2013-11-01


China's leading search engine Baidu has launched its first online wealth management platform Baifa on Monday. The biggest online search company in the country is moving away from its advertising business to compete with Alibaba and Tencent Holdings in the financial sector.

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China’s finance sector has been dominated by state banks. But now technology companies are using their online resources and platforms to push financial products developed by financial firms.

Alipay launched Yu’ebao earlier this year which allows users to transfer their balance in their Alipay accounts into a money market fund. It has attracted 16 millin users. Analysts say internet firms are moving away from advertising and making a foray into financial services.

Wang said, "Internet firms traditionally rely on advertisement, games, and online trading platforms for their profits. But those profits are narrowing with more competitors in the pool. With their large user base, it’s inevitable that they are moving into the financial businesses."

Wang adds that current wealth management products have very similar returns and therefore are very suitable for online distribution. Low interest rates in the banks give customers more incentives to invest. Baifa’s website crashed soon after its launch and reached its funding raising limit in less than 5 hours.
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Carr at North Square Blue Oak says there were obvious risks with financial reform that the government had already encountered.

She points out that e-commerce giant Alibaba Group’s Yu’ebao fund lured 100 billion yuan ($16.5 billion) away from the country’s bank deposits in just four months.

"New innovative financial products such as this are already causing quite a lot of disruption to the financial system," she says.

Tuning up for 2014 reform
Updated: 2014-01-06 01:43
( China Daily)
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This post was edited by 468259058 at 2014-1-23 23:44

In addition, Yu'ebao (Leftover Treasure), an Alibaba personal finance product, had 43.03 million users with aggregate deposits of 185.3 billion yuan at the end of 2013.

Yu'ebao is an online fund established by Alipay together with the private Tianhong Fund Co. last June.

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Post time 2014-1-23 23:43:47 |Display all floors
This post was edited by 468259058 at 2014-1-23 23:45

Alipay yesterday said its popular cash management product Yu’ebao achieved 250 billion yuan (US$41 billion) in assets, propelling Tianhong Fund Management Co to be China’s largest fund company by assets.

By yesterday, Tianhong’s money market fund sold via Alipay had 49 million investors.

Alipay’s easy and convenient-to-use investment platform attracted a large group of grassroots investors with more than 80 percent of Yu’ebao’s subscribers aged between 18 and 35 years old who invested an average of 4,307 yuan.

A number of Internet companies and retailers such as Baidu, NetEase and Suning have started to offer similar cash management products since Yu’ebao was launched in June.

Yu’ebao product attractive
By Ding Yining | January 16, 2014
shanghai daily
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BEIJING, Jan. 11 (Xinhua) -- China's securities regulator has stressed the protection of investor interests during online sales of mutual fund products, the Shanghai Securities News reported on Saturday.

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Last June, China's most popular online payment platform, Alipay, joined with Tianhong Asset Management Co. to create Yu'ebao, a product that allows Alipay users to conveniently transfer their balance into a mutual fund account to make a profit.

After its launch, Yu'ebao soon attracted a vast number of users thanks to Alipay's huge customer base. At the end of 2013, Yu'ebao boasted more than 43 million users with total deposits of 185.3 billion yuan (about 30 billion U.S. dollars).

Other Internet companies have followed suit to partner with fund companies. For instance, Baidu, the largest Chinese search engine, has cooperated with the China Asset Management Co., a leading fund company in China.

Earlier this month, two fund-service websites -- Fund123.cn and the fund site of Eastmoney.com -- were penalized by local securities regulators for inappropriate wording in their product adverts.
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Post time 2014-1-23 23:49:21 |Display all floors
The latest figures from Tianhong Asset Management show that the AUM (asset under management) of Yu’ebao, the currency market fund which is co-launched by Alibaba and Tianhong on 13 June, 2013, has rocketed from June 13th to November 14th, 2013, from 0 to CNY100B.
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