More Internet users buying financial products online
Tightening of regulations and product adjustments have accelerated the diversion of investors' funds in China
The number of Internet users in China who have bought financial products online reached 129 million at the end of 2017, a rise of 30.2% from a year earlier, Xinhua news agency reported.
According to a report released by the China Internet Information Center, the online financial management market has shown a trend of diversified development, driven by the tightening of regulations.
Ant Financial, the fintech arm of Alibaba, has made related adjustments in response to the latter.
The company’s flagship product, Yu’e Bao, which has become the world’s largest money-market fund, has reduced the single-day purchase limit to 20,000 yuan (US$3,150) for individual investors. Also, the total amount of the holding is limited to 100,000 yuan (US$15,750) per investor.
The move has accelerated the diversion of funds, as more and more investors seek out other online wealth management platforms, or traditional financial institutions such as banks and funds.
Various types of short-term, fix-term online wealth management products have maintained rapid growth, the report said.