Alibaba set to roll out second fund
13 March 2014
Category: News, Asia, China, Global
By Asia Asset Management
China’s ecommerce juggernaut Alibaba Group is poised to launch its second wealth management product following the China Securities Regulatory Commission (CSRC) accepting the application for its guaranteed fund Ali Yihao on March 7.
Alibaba Group and New China Fund Management will jointly launch the fund while Ping An Bank has been appointed as custodian. The fund will be traded via Yu’ebao, an online payment platform, which is part of Alibaba Group affiliate AliPay.
Yu’ebao had over 81 million users as of the end of February with total AUM of more than 50 billion RMB (US$8.13 billion). AliPay teamed up with Tianhong Asset Management to launch its first wealth management product, the Tianhong Zenglibao Monetary Fund, through Yu’ebao last June
In October 2013, Alibaba Group attempted to purchase a controlling stake in Tianhong Asset Management. Negotiations are still ongoing.