(Yicai Global) July 3 -- Tianhong Asset Management Co. recently said that its money market fund, Yu'E Bao, was overseeing USD210 billion (CNY1.43 trillion) at the end of last month, putting it almost on par with one of the Big Four state-owned banks, Bank of China [SHA:601988], whose average personal demand deposit balance stood at CNY1.63 trillion.
The value of the fund's assets under management at the end of June was greater than the balance of personal demand and time deposits reported by China Merchants Bank [SHA:600036] at the end of last year.
Yu'E Bao's holdings increased nearly 80 percent to CNY1.14 trillion at the end of the first quarter from CNY800 billion at the end of last year, and rose almost CNY300 billion to CNY1.43 trillion in the second quarter, the China Fund newspaper reported today.
Money has continued to flow into the fund at a considerable pace despite a minor decline in quarterly growth. At the current rate, Yu'E Bao will outstrip the Bank of China's full-year average personal demand deposit balance by the end of September.
Personal demand and time deposits at China Merchants Bank, the largest joint-stock bank in the country, were CNY951.6 billion and CN332.9 billion, respectively, totaling nearly CNY1.3 trillion at the end of last year, its 2016 annual report shows.
The value of Yu'E Bao's assets under management are indicative of inclusive finance's power. Online wealth management services have made profound changes to the traditional financial market.
Yu'E Bao, officially Tianhong Yu'E Bao Money Market Fund, is an asset management product that was developed by Ant Financial Services, a company established by Jack Ma, the founder of Alibaba Group Holding Ltd. [NYSE:BABA]. Tianhong Asset Management manages the fund.