Alibaba helps make China\\\'s largest fund

BEIJING, Nov 16 (Xinhua): Currency fund Tianhong Zenglibao has become the first fund in China to hit 100 billion yuan (US$16.30 billion) of sales thanks to its cooperation with Yu'ebao, Alibaba's wealth management product.
The fund, with more than 29 million buyers so far, saw its asset scale sales exceed 100 billion yuan on Thursday, the Shanghai Securities News reported on Friday, citing data from Tianhong Fund.
Alipay, a subsidiary of the e-commerce giant Alibaba Group, announced in June it would offer its users the option to directly invest with the private Tianhong Fund using spare cash from Alipay accounts. The business is called Yu'ebao.
The past five months have seen this fund blossom, owing to the prosperous Internet e-commerce platform, and the Singles Day shopping spree on November 11 had helped Yu'ebao.
In the process of a deal on Taobao, once the buyer pays for the order, his or her money is first accepted by Alipay, then after he or she receives the goods, a final confirmation is made and Alipay then gives the money to the seller. If a buyer forgets to confirm payment, the money is transferred into the seller's account after 10 days by the system.
The Singles Day had a total volume of 35 billion yuan ($5.75 billion) and thus a large amount of money passed through Alipay's account. Analysts estimated that Alipay may have also bought the fund using the extra income, which powerfully enlarged the scale of Yu'ebao
Insiders of the fund market pointed out that the large scale of increase was due to Alibaba's statement that Yu'ebao was the only partner of Alipay in the sales of monetary funds, after Alibaba began to share the hold of Celestica fund in October.
Profit purchasing investors tend to choose safe financial management tools. The relatively stable yields of Yu'ebao is favoured by most customers, the report said.