Ali Wants To Launch Hong Kong Version Of Balance Treasure

Alibaba (Alibaba) intends to launch the Hong Kong version of the balance treasure. As Alibaba's popular Chinese money market fund, the yield of the balance treasure is higher than that of the traditional account.

Alipay, the Alibaba's financial sector, is negotiating with the Hongkong Monetary Authority (HKMA), hoping to secure the authorization to launch the Hong Kong version of the balance of treasure. The balance was launched in June last year and has attracted more than 574 billion yuan (US $94 billion) of funds so far.

This highlights the fact that Alibaba, after completing its initial public offering (IPO) record of $25 billion in New York, is determined to copy its model overseas.

If the Alibaba is approved by Hongkong and Mainland China, the Hong Kong version of the balance will invest in the mainland to achieve higher returns. The group said it thought the rate of return could reach 4%, while the current market rate of return was 1%.

Shu Ming, chief strategy officer of Ali small and micro financial services group, said: "we hope to launch this service not later than the beginning of next year. Moreover, if we can invest our money back to the mainland, we can make a great contribution. We are working hard. " Ali's Alipay is the largest online payment provider in China.

If Alipay wants to achieve this ambitious plan in Hongkong, it must first obtain a banking licence. A senior staff member of the Hongkong Monetary Authority said: "they need to become a licensed bank. The licensing system in Hongkong is very strict."

　　 Alipay It is also necessary for the mainland authorities to approve its fund-raising in the offshore renminbi market, but then to return the funds back to the mainland because there is capital account control in the mainland. If China's central bank and the State Administration of foreign exchange (SAFE) approve, this will be an important step towards liberalization of China's banking system.

At present, Fund company Mainly through the RMB qualified foreign institutional investor (RQFII) project, the offshore RMB funds will be invested in the mainland capital market.

　　 RQFII It is mainly composed of bond funds and exchange traded funds (ETF), so far the regulators have not approved RQFII money market funds.

Morgan Stanley (Morgan Stanley) data show that Hongkong's renminbi deposits are now equivalent to 25% of Hong Kong dollar deposits.

Alipay is also considering launching a Hong Kong dollar product, although the potential interest rate difference of the product will be less than that of any Renminbi product.

When Alipay announced the plan, both mainland China and Hongkong were debating the impact of shadow banking and Internet banking on the formal banking sector.