The backers of popular online fund Yu’E Bao have fired back at a TV commentator who accused it of being a bloodsucker that racks up corporate financing costs, the Global Times reported Sunday. China Central Television commentator Niu Wenxin wrote on his personal blog that the overall economy and the end user had to pay for the 2 percent yield that the fund and its partner took and the 4-6 percent given to investors. But Yu’E Bao co-founder Alipay said the fund’s annual fees came to 0.63 percent of assets rather than the 2 percent Niu characterized as profiteering, the report said. Wang Dengfeng, a fund manager at Beijing-based Yu’E Bao fund manager Tianhong Asset Management Co., said the high yield did not cause high financing costs, and simply pointed to market rates reflecting the demand for financing.
– Contact HKEJ [email protected]