17 February 2020

Alipay slams banks for cutting fund transfer limit, paper says

Alibaba Group Holding Ltd.’s third-party payment service Alipay criticized the move by the country’s four major state-owned lenders to lower the maximum amount that clients can transfer for online payments or investment in internet-based money market funds, saying the reason given by the banks was weak, the Shanghai Securities News reported Wednesday. Industrial and Commercial Bank of China Ltd. (01398.HK, 601398.CN), Bank of China Ltd. (03988.HK, 601988.CN), China Construction Bank Corp. (00939.HK, 601939.CN) and Agricultural Bank of China Ltd. (01288.HK, 601288.CN) have cited the security of customer accounts as the reason for lowering the fund transfer limit from 50,000 yuan to 5,000 yuan per transaction, with the monthly total capped at 50,000 yuan. An unnamed representative of Tianhong Asset Management Co. Ltd., Alibaba’s partner in its investment fund product Yu’E Bao, said the limit is not reasonable as many online consumers normally spend several thousands of yuan per purchase, the report said.

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