BEIJING: The online payment affiliate of dominant Chinese e-commerce company Alibaba Group is taking control of Tianhong Asset Management Co to accelerate its push into online financial services.
Tianhong shareholder Inner Mongolia Junzheng Energy & Chemical Industry Co said yesterday the investment of 1.18 billion yuan (US$192.8mil) gives Zhejiang Alibaba ECommerce Co, the parent company of online payment company Alipay, 51% of Tianhong. Alipay and Tianhong launched a new fund and payment platform – called Yu E Bao, or “leftover treasure” in Chinese – in June to help Alipay customers convert spare cash into a money market fund holding. In its first 18 days, the fund attracted more than 2.5 million customers and raised 6.6 billion yuan (US$1.08bil), according to Tianhong, and is expected to be one of the most successful mutual funds in China this year.
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