News Column

Yu Ebao Annualized Rate of Return to 4%

July 30, 2014

BEIJING, July 30, SinoCast -- Yu Ebao, a balance value-added service built by Alibaba, recorded 7-day annualized rate of return of 4.1840% on July 29, falling nearly 40% over the highest 6.7630% at the beginning of the year and close to one-year fixed deposit interest rate of 3.25%.

Insiders believed the high rate of return of various online wealth management products are mainly from bank agreement deposits. As big four banks publically showed they do not accept agreement deposits of online wealth management products, the current market liquidity tended to be relaxed and the money market interest rate dropped, the rate of return of online wealth management products certainly will drop.

Since debuting in June 2013, relying on flexible operating ways, low threshold, high yield, strong liquidity and fragmented wealth management ways, Yu Ebao attracted numerous investors to crash in. by the end of the first quarter of this year, Yu Ebao's scale was close to CNY 500 billion and the number of users exceeded 81 million, which has completely subverted the traditional bank wealth management mode.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Sinocast Internet, Media & Online Services Beat (China)

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters