CHINA TOPIX

03/28/2024 11:57:26 am

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Total amount of Alibaba’s Yuebao Fund Exceeds US$65 Billion


From zero to US$41 billion, it took Yuebao 200 days to set up such a great scale fund. While from US$41 billion to US$65 billion, Yuebao only took about a month to accomplish the goal.

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By Feb. 14th, the total amount of Yuebao fund, which shares the platform of Alipay, has reached US$65 billion. Alipay is China's leading third-party online payment escrow service, which is supported by Alibaba group. This is also regarded as the beginning of the boom of China's Internet finance service in 2014.

What does it mean to raise US$65 billion in less than a year? Let's take China's local-government bonds in 2013 as an example, Chinese finance ministry set a quota of US$57 billion under the municipal bond program for 2013.

According to statistics, Tian Hong Asset Management announced that the amount of Yuebao fund had exceeded US$41 billion on Jan. 15th. Based on an insider of Yuebao fund, if investors transfer their money into Yuebao before 3 p.m. on Jan. 19th, the investors can obtain benefits during Chinese traditional spring festival. Therefore, funds transferred intoYuebao hit a record on Jan. 19th.

Analysts say it means the total amount of Yuebao fund has exceeded US$57 billion by Jan. 30th. During the several days between Jan. 1st and Feb. 14th, the enormous amount of users in Yuebao has strong demands for finances. As a result, it is to be expected the Yuebao fund can reach more than US$65 Billion.

By Jan. 15th, Yuebao announces its number of users has reached 49 million. After Chinese spring festival, the number of users in Yuebao has exceeded 61 million, with a rapid growth rate of 12 million new users in 20 days. It is worth talking into consideration that 60 percent of these new users transfer their first sum of money into Yuebao by their phones.

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