Yu’E Bao, an investment service offered by Alipay, China’s leading online payments provider,and Tian Hong Asset Management, has attracted aggregate deposits of more than 400 billionyuan ($65.96 billion), media reports said on Tuesday.
The deposits of Yu’E Bao, which means leftover treasure inChinese, skyrocketed to more than 400 billion yuan on Feb14, a month after it reported 250 billion yuan of assetsunder management on Jan 15, said Shanghai SecuritiesNews.
It is reported that the size of Yu’E Bao is even bigger thanthe size of the bonds issued on behalf of local governmentsin 2013, which amount to 350 billion yuan.
The so called grassroots wealth management product,which is designed to make it easy for Alipay users to investtheir idle cash in their Alipay accounts and get a higherinterest rate than typical bank savings deposits, is the firstof its kind to combine the convenience of the Internet withthe sophistication of finance.
Despite its giant size, the growth of Yu’E Bao shows nosigns of slowing in terms of attracting deposits from users.Its first fixed-term wealth management product, whichrequires users to deposit their money for an entire year,sold out within six minutes when it was launched on Friday.
A total of 880 million yuan worth of wealth managementproducts were sold on that day. The product’s annual yieldis expected to reach 7 percent.