Online companies in China are eating into the business of retail banks with Alibaba Group Holding Ltd's money market fund, Yu'e Bao, having attracted 400 billion yuan (US$66bil) in assets under management, more than the customer deposits held by the five smallest listed Chinese banks. Similar online products from Baidu Inc and Tencent Holdings Ltd also contributed to a fall of one trillion yuan in traditional bank deposits in January - Reuters Photo.
SHANGHAI: China's brick-and-mortar banks are launching a counter-attack against the assault on their business from Alibaba and other Internet heavyweights, in a bid to staunch the outflow of bank deposits into high-yielding online investment products.
In less than eight months, Alibaba Group Holding Ltd's money market fund, Yu'e Bao, has attracted 400 billion yuan (US$66bil) in assets under management, more than the customer deposits held by the five smallest listed Chinese banks.
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