Seven-day annualized return of Yu'E Bao, the largest money-market fund in China, hit a record low of less than 5 percent since November, the Securities Times reported Monday.
The return rate stood at 4.985 percent on Sunday, with the daily yield per 10,000 yuan ($1,603) dipping to 1.3115 yuan,according to the article citing the yield report released on the fund product's official website.
The rate reached its highest of 6.7630 percent on Jan 2 this year. And money invested in the fund product totaled 540 billion yuan by the end of the first quarter.
Yield drop of the online wealth management fund, jointly run by Alipay, Alibaba Group's e-payment arm, and Tian Hong Asset Management Co Ltd, is mainly attributable to the declining interbank lending rates since early April.
Meanwhile, online wealth management products such as Tencent Holding's Licaitong and Baidu Inc's Baizhuan, together with some of commercial banks, also witnessed a continued decline of annualized return.
The phenomenon would undercut investors' confidence on such fund products as Yu'E Bao, which will lead to further drop of return, albeit gradually, and will not see an uptick until mid-June,said the Securities Times report citing industry insiders.
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