19 August 2019

PBoC rules out takeover of Alibaba fund, Xinhua says

People’s Bank of China governor Zhou Xiaochuan {周小川} said in an interview on Tuesday the central bank has no plans to take over Alibaba Group Holding Ltd.’s money market fund Yu’E Bao, but will introduce measures to strengthen supervision of online financial products, the official Xinhua news agency reported. Yu’E Bao has attracted some 400 billion yuan (US$65.09 billion) since its launch in 2013 as it offers interest rates much higher than investors can get from traditional bank deposits. Meanwhile, Zhou said recent volatility in interest rates is normal, but remained tight-lipped on whether the central bank will widen yuan’s trading band this year, the report said.

– Contact HKEJ at [email protected]





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