Alibaba Group Holding Ltd (NYSE:BABA) is a leading innovator of financial technology (fintech) platforms and tools, and some of Asia’s biggest asset managers are taking notice.
As Pensions & Investments reports, many local firms are lining up to do business with the Chinese e-commerce behemoth:
Money management firms looking to grow in China are finding many roads now lead through internet and financial technology giant Alibaba Group Holding.
The company’s most spectacular foray into money management thus far has been its “leftover treasure” online money market fund, serving Alibaba’s army of cellphone-wielding customers by sweeping up spare cash from their online AliPay accounts that would otherwise be laying fallow. In the space of less than five years, the fund, called Yu’E Bao, has become the world’s biggest money market fund with roughly 1.7 trillion renminbi ($262 billion) in client assets.
Ant Financial, which Alibaba funded and owns a large stake in, also recently launched Ant Fortune. The new platform allows money managers to market their funds to Alibaba’s massive base of Asian customers. The result has been a land grab of sorts among fund managers looking to establish themselves as leaders on the platform, and collect the riches that will no doubt fall in the laps of those savvy enough to capitalize on the new technology.
Alibaba Group Holding Ltd shares rose $0.77 (+0.42%) in premarket trading Tuesday. Year-to-date, BABA has gained 6.72%, versus a 5.93% rise in the benchmark S&P 500 index during the same period.