Commission Gives Approval to Alibaba to Operate Online Retail Platform
The China Securities Regulatory Commission has given its approval to Alibaba Group Holdings to act as a third party for its online sales of fund products. These fund products are now available on Alibaba’s Taobao website its well known online retail platform. These approval is a step towards the company plan in providing an alternative to the country’s tight regulated financial system.
Alipay a affiliate of Alibaba and the parent company of Zhejiang Alibaba E-Commerce Co. that is controlled by the company’s founder Jack Ma will be the one providing the third party payment services of its online fund sales, and as off Friday the first batch of fund firms have opened their online funds on Taobao. Anyone aged 18 and above can purchase funds once they have passed real name authentication using Alipay online payment service.
The company have partnered with 37 funds that offers wealth management products to customers. Alipay fund payment platform also launched their Zenglibao fund that is managed by Tianhong Asset management Co. the Zenglibao fund is a money market product that is one of the most successful fundraising assets under any mutual funds in China which attracted more than 50 billion yuan under the management of 13 million customers.
AliPay’s fund payment platform Yu E Bao, or “leftover treasure,” launched its Zenglibao fund, managed by the fledgling Tianhong Asset Management Co., in June.
The Zenglibao fund, a money market product, is the most successful fundraising by any mutual fund in China this year, attracting 55.7 billion yuan (US$9.14 billion) in assets under management from 13 million customers as of Sept. 30.