Ant Group’s market share has shrunk for four years as consumers transfer their money while China destroys Jack Ma’s pay group.
Yu’e Bao Ants’ pockets fell by 18% in the first three months of the year to Rmb972bn ($ 150bn) as the group pushed users to switch from donor money, according to a report released Thursday by Tianhong on Thursday. Asset Management Assistant. The fund, the largest in the world, becomes a reserve bank held by hundreds of millions of users of the Ant’s Alipay program.
The fall came as Chinese officials had hoped stress on Ma’s website since he suddenly suspended the start of Ant $ 37bn, which would be the largest in the world, in November. Members have not appeared in public since the list was disrupted and edited stupid Alibaba, sister to Ant’s ecommerce sister, reported $ 2.8bn against the competition this month.
Ants were ordered to “reduce” the size of Yu’e Bao as part of repair work was affected by Chinese authorities last week. Officials have been concerned for some time about Yu’e Bao’s growth, fearing that the redemption could lead to economic hardship.
The market fund is managed by Tianhong and is expected to be 690m economically by the end of 2020.
Users at Alipay will soon receive notifications encouraging them to move their money elsewhere.
Constance Zhou, a 28-year-old lawmaker, said she transferred Rmb100,000 at the end of January after receiving an in-app notification showing high interest rates and another fund. “I looked at the difference and just removed it,” he said, adding that the products that banks offer offer better interest rates than Alipay.
Yu’e Bao offered an annual interest rate of more than 6% when it was established in 2013 by investing in assets including bonds. But refunds are close to 2% in recent months as the fund has invested in a more peaceful economy, more money such as banks, and interest rates have plummeted.
Kevin Kwek, a researcher at Bernstein Research, said Yu’e Bao encouraged users to continue to return to the program so “forced reduction” reduces its appeal.
Ants have long since stopped advertising their financial products and have become a platform for other groups to use many customers. The Yu’e Bao platform sells for more than $ 20 from other content managers.
Yu’e Bao is part of the Ants business, which brought in Rmb11bn in cash in the first six months of last year, or 16% of the total group.
Tianhong called the economic downturn “inside all” and said a similar change in Yu’e Bao’s growth had already taken place. It also stated that the fund “operates well, and the reduction in non-compliance with the fund’s risk”.
Additional comments by Nian Liu and Sherry Fei Ju in Beijing