Internet giant Tencent (0700) has attracted 80 billion yuan (HK$99.6 billion) for its wealth management product Licaitong in less than four months since its launch
May 19, 2014 Leave a comment
Tencent chasing
Wednesday, May 07, 2014
Internet giant Tencent (0700) has attracted 80 billion yuan (HK$99.6 billion) for its wealth management product Licaitong in less than four months since its launch, taking its daily inflow to 727 million yuan.
But this lags a long way behind rival Alibaba’s Yuebao platform, which had pulled in an accumulated 541.3 billion yuan by March 31.
Licaitong, like Yuebao, offers a yield of about 5 percent per annum compared to the 3.3 percent return for one-year deposits at most mainland banks.
A People’s Bank of China official has said the reserve requirement ratio should also be extended to internet finance platforms. If that happens, Yuebao’s annual yield would be cut by a percentage point to 4 percent.
Tencent also plans to acquire 11.3 percent of digital mapping service provider Navinfo for 1.17 billion yuan. The deal needs regulatory approval.
This follows Alibaba revealing last month its intention to buy online map provider Autonavi Holdings. LING WANG
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