Arab Today, arab today yu\ebao boosts capital supply for economy in china
Last Updated : GMT 03:44:27
Arab Today, arab today
Arab Today, arab today

Yu\'ebao boosts capital supply for economy in China

Arab Today, arab today

Arab Today, arab today Yu\'ebao boosts capital supply for economy in China

Beijing - XINHUA

Yu'ebao, a popular online wealth management product, will boost funds available for in the real economy, rather than raising financing costs, an official report showed on Monday. The product is a way of collecting small amounts of money from customers, when those small amounts enter the financial system, total funds available in the real economy are raised, according to a report for Xinhua by the Ali Small and Micro Financial Service Group, a branch of e-commerce firm Alibaba, owners of Yu'ebao. Yu'ebao, which literally means "account balance treasure", was put online by third-party online payment platform Alipay in June to help customers "manage excess funds in their Alipay accounts". Users can easily transfer their account balance into Yu'ebao, which links to a money market fund run by Tianhong Asset Management Co. The product has won great popularity among Chinese people, as it is as convenient as demand deposit and the yield is much higher than China's benchmark one-year deposit rate of 3 percent at present. It has more than 81 million users with capital raised reaching 500 billion yuan (81.5 billion U.S. dollars) by the end of February. The report was the first official response to an accusation by CCTV commentator Niu Wenxin, who said late last month that Yu'ebao is like a "vampire" as it will raise the capital cost of commercial banks and subsequently increase the financing costs for enterprises. Online fiance products like Yu'ebao invest heavily in the interbank market, lending most of their funds from individuals to financial institutions at higher rates than individuals can get for bank deposits. The financing cost of companies is determined by the demand and supply of capital, not by commercial banks' cost of getting deposits, the report said. "Prior to the creation of Yu'ebao, commercial banks never lowered their lending rates because of their low cost for accepting deposits," it said. The statement also said the popularity of Yu'ebao helped other financial institutions realize the advantages of online finance and steered wealth management market toward healthy competition, which brings tangible benefits to clients. Yu'ebao will promote market-oriented interest rates and help the financial system form a equilibrium interest rate, according to the report. Shu Ming, chief strategist of the Ali Small and Micro Financial Service Group, said Yu'ebao will also help financial players change their mindsets and boost their innovation capabilities. "Previously, government control over interest rates gave banks a privilege to make easy profits. The appearance of Yu'ebao will break their monopoly to some extent," Shu said. At present, commercial banks are required to implement deposit and lending rates announced by the central bank. China will not ban Internet finance, but will improve regulations in the area, central bank governor Zhou Xiaochuan said last week at the ongoing annual sessions of China's national legislature and political advisory body. "China encourages technological applications in the financial sphere," he said. The words came as a great relief for managers and investors of Yu'ebao and similar financial products, who had worried about policy uncertainties. The government work report delivered at the sessions also said that China will promote the healthy development of Internet finance and improve the mechanism of financial supervision and coordination.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today yu\ebao boosts capital supply for economy in china Arab Today, arab today yu\ebao boosts capital supply for economy in china

 



Arab Today, arab today
Arab Today, arab today Nasima Gamei revives Algerian heritage in jewelries

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives Algerian heritage in jewelries
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Blind sheikh buried in Egypt

GMT 06:32 2017 Thursday ,23 February

Blind sheikh buried in Egypt
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector

GMT 05:57 2017 Wednesday ,22 February

Britain risks clash with EU over RBS bailout

GMT 05:26 2017 Wednesday ,22 February

Singapore carbon tax would hit refiners, help renewables

GMT 05:18 2017 Wednesday ,22 February

Chinese PM: US should avoid ‘trade war,’

GMT 20:59 2017 Tuesday ,21 February

Economy good, but homes in German cities overpriced

GMT 05:29 2017 Tuesday ,21 February

Sovereign funds pulled $38bn from markets in 2016
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Salma Rashid happy for 'A Whisper of Love'

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday