23 October 2019

Yu’E Bao yield falls below 6% as users top 81 mln, paper says

Alibaba Group Holdings Ltd.’s money market fund, Yu’E Bao, has seen its users exceed 81 million as of Feb. 27, but its seven-day annualized yield was down at 5.971 percent on Sunday, below 6 percent for the first time since Dec. 26, the Securities Daily reported Monday, citing data from fund manager Tianhong Asset Management Co. Ltd. Yu’E Bao’s yield has been following money market rate, and risk control always comes before yield, Tianhong manager Wang Dengfeng was quoted as saying. The China Securities Regulatory Commission is considering issuing new rules to strengthen supervision of money market funds and sales by online finance operators, the report said.

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