Discovering
why
Yu'ebao gained sudden success in late 2013
Outline
-
Research method
-
Background of Yu'ebao
-
Reasons for choosing Yu'ebao
-
Public and government's attitude
-
Future outlook of Yu'ebao
-
Conclusion
Research Method
Few English papers
Therefore...
We focus on:
- Chinese database
- well-known press
Background
Definition of Yu'ebao
Yu'ebao's pattern
"T+0"
Q : What is "T+0"
A : T=Trade
0=Real-time clearing
Withdraw money in 0 day
Think: What is the relationship between Yu'ebao and "T+0"?
Yu'ebao's prevalence
Unit:100millionCNY
Yu'ebao's prevalence
Reasons for choosing Yu'ebao
Getting high investing money
No limitation on deposit
With "Alipay Wallet"APP.
With the strong platform--Taobao
Timing
Government's Attitude
Policy:
Zhou Xiaochuan said
(Governor of the People's bank )
Yu'ebao won't be banned!
Government's Attitude
Niu(CCTV) : Yu'ebao= "Vampire"
Distorting the interest rate of banks
Public's Attitude
Most of netizens support Yu'ebao!
Future Outlook
800 million users of Alipay
× 2600 CNY each one
× 10 %
=Yu'ebao's Scale!
200 to 300 billion CNY
Problems
Assurance( risk)
does not have the guarantee from the government
Problems
The banks will fight back!
ICBC & ABC's restrict
Copycats from Tecent & Baidu
Conclusion
-
unprecedented partnership
- shape the future of finance
- pervade consumers' lives
-
regulation will likely follow
Yu'ebao is on the way towards proving its value and worth!
References
Lianting Tu.(2014). Alibaba's Yuebao dents Chinese banks' profitability. Reuters, March, 19-2014, Retrieved from http://www.reuters.com/article/2014/03/20/china-banks-idUSL2N0MG0BV20140320
Peter Cai.(2014). Alibaba’s Yuebao gives China's banks a rude awakening. China Spectator newsletter, March, 6-2014, Retrieved
fromhttp://www.businessspectator.com.au/article/2014/3/6/china/alibabas-yuebao-gives-chinas-banks-rude-awakening
Unknown Author.(2014). 7万条微博大数据解密“余额宝争议”(70 thousand Weibos analyzing the debate on Yu’ebao). Moneyweek magazine, March, 3-2014, Retrieved from
http://tech.china.com/news/company/892/20140303/18369359.html
Weiqiang Zhang.(2014). 四个数据维度解析余额宝(Four aspects of data to analyze Yu’ebao). Internet Finance Lab, March, 29-2014, Retrieved from
http://tech.163.com/14/0329/17/9OH84R2E00094ODU.html