Yu’E Bao, Alibaba Group’s money market fund, is benefiting the economy and not pushing up banks’ capital costs as some critics suggest, news website house.hexun.com reported Tuesday, citing an Alibaba report. Corporate financing costs should be decided by the demand and supply of market capital instead of how much it costs the banks to take deposits. In fact, banks have not lowered loan rates as such costs have fallen, according to the report. Yu’E Bao has generated 2.96 billion yuan (US$482.03 million) in income for its clients from its June launch until end-January, the report said.
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