A recent report on Chinese Banking by UBS analysts Irene Huang, Michelle Li and Stephen Andrews highlights the emergence of Money Market Funds (MMFs) in China and says these funds could usher in a wave of disintermediation in the Chinese banking industry within the next two years.
Money market funds: The digital challenge
In June this year, China’s biggest e-commerce company, Alibaba Group Ltd, announced that its third-party payment platform, Alipay, also the biggest in the country, would launch Yu E Bao, a dedicated fund management platform. Alipay provides payment solutions to 460,000 merchants and boasts 800 million registered accounts, which can now divert cash from their Alipay accounts into a Money Market Fund managed by Tianhong...
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full Article
