What is Yu er Bao?
Founded in 2013, Yu’e Bao has ballooned to become the world’s largest money market fund at its peak. But the money manager has been curbing expansion by setting a daily contribution cap and imposing subscription limits since 2017 under pressure from the regulator to slim down.
How does Yuebao work?
By collecting deposits from a large number of individuals, Yuebao accumulates huge sums of money, and is able to negotiate for a far better interest rate with big banks. It then passes on most of those benefits to users.
What is Ant fortune?
Ant Financial has also created a wealth management platform, Ant Fortune, which enables users to choose between Yu’e Bao and other funds offered by rivals. It now boasts over 4,000 wealth management products from over 100 asset management companies.
What is Jack Ma worth?
23.7 billion USD (2022)Jack Ma / Net worth
Can you lose money in a money market fund?
Money market funds seek stability and security with the goal of never losing money and keeping net asset value (NAV) at $1. This one-buck NAV baseline gives rise to the phrase “break the buck,” meaning that if the value falls below the $1 NAV level, some of the original investment is gone and investors will lose money.
What are the disadvantages of a money market account?
Disadvantages of a Money Market Account
- Minimums and Fees. Money market accounts often need a minimum balance to avoid a monthly service charge, which can be $12 per month or more.
- Low Interest Rate. Compared to other investments, money market accounts pay a low interest rate.
- Inflation Risk.
- Capital Risk.
Are Yu’e Bao’s funds under management growing again?
While Yu’e Bao’s funds under management are growing again, the sector for overall Chinese money market funds has declined somewhat since the middle of 2018. As concerns about the sheer size of Yu’e Bao grew, Ant Financial adopted voluntary measures that likely curtailed its expansion.
How big is YuYu’e Bao’s business?
Yu’e Bao now accounts for just over a third of China’s 1.46 trillion-yuan money market fund business, a burgeoning segment that makes up 31 percent of the country’s asset management industry.
Why is China’s Yu’e Bao so popular?
The group’s Taobao platform plays host to some 7 million online merchants, such as Wang’s Qishi Club, and sold more than 1 trillion yuan worth of products to more than 500 million registered buyers last year. The cash flow generated by that commerce has fueled Yu’e Bao’s rise.
How much did China’s Yu’e Bao deposit?
Senior Chinese financial officials told the Financial Times that Yu’e Bao had accumulated at least 500 billion yuan ($81 billion) in deposits by the second week of March. 3.