Chinese digital wealth platform, Yu'EBao, grows 42% YoY

Alibaba-backed digital wealth management platform, Yu'EBao, has seen its number of users rise 42% year-on-year to 260m by the end of 2015, with a total of ¥620.7bn ($95bn) invested. As a result, Tianhong Asset Management, which manages the funds, has become the first Chinese company to exceed ¥1tn ($165bn) assets under management.

Tianhong's assets under management exceed $165 billion Updated: 2016-01-05 13:50 (chinadaily.com.cn)

A visitor walks past leaflets of Yu'ebao at the stand of Tianhong Asset Management during an exhibition in Beijing, November 1, 2013.[Photo/IC]

Tianhong Asset Management Co has become China's first fund company whose assets under management have exceeded one trillion yuan ($165 billion).

Latest data released by Tianhong Asset Management, which runs Yu'ebao with China's largest payment service provider Alipay, showed that as of Dec 31, 2015, the company saw its assets under management to a record 1.07 trillion yuan.

The number of users of the online wealth management service Yu'ebao rose 42 percent from a year earlier to 260 million by the end of 2015, with a total value of 620.7 billion yuan.

Tianhong's record meant there is no limit in asset management company's development, and the industry will break traditional bottleneck and enter a new era after a deep and full integration between the Internet and financial services.

Yu'ebao, a well-known online wealth management product, was launched in June 2013 to make it easy for Alipay users to invest their idle cash in their Alipay accounts and receive a higher interest rate than typical bank savings.

In 2014, the China Securities Regulatory Commission approved Zhejiang Alibaba E-Commerce Co, the parent company of online payment company Alipay, to purchase 51 percent of Tianhong Asset Management.

According to the Asset Management Association of China, as of Sep 30, asset under management by asset management companies, securities companies, private equity and futures companies totaled 32.69 trillion yuan.

Among them, asset under management by asset management companies, securities companies, private equity and futures company reached 16.86 trillion, 10.97 trillion, 4.77 trillion and 81.9 billion yuan respectively.