China’s Financial System by Dominique Rambures & Felipe Escobar Duenas

Author:Dominique Rambures & Felipe Escobar Duenas
Language: eng
Format: epub
Publisher: Springer International Publishing, Cham

Saving Instrument Marketing

In 2014, 44% of investment funds had been marketed through internet networks. They were offering a much higher return than saving accounts or other banking products combined with a higher liquidity. A number of investors have disinvested, removing their savings from bank funds to funds marketed through internet networks. The monetary funds sold through Alibaba are available without notice at any time. On the State’s CCTV television network, Alibaba was said to be “a vampire sucking the banks’ blood”.

In a first step, the largest networks like Alibaba, Tencent and Baidu marketed investment funds managed by banks or investment companies. In a second step, internet networks created and marketed their own funds. Alibaba’s fund, Yu’e Bao,1 launched in 2013, was distributed by Ant Financial through the group’s payment arm, Alipay, an affiliated company of Alibaba. In two years Yu’e Bao had collected Rmb 578 billion ($98 billion), which is already the largest Chinese fund.2 Climbing up the value chain, in 2006 Alibaba acquired THAM (Tian Hong Asset Management), an asset management company. Thanks to the customer data collected by Alibaba’s network of e-commerce, the group is in a situation where it can optimize its marketing policy.

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