Watchdog sets sights on Baidu wealth management
Updated: 2013-10-23 21:26
By Xie Yu (chinadaily.com.cn)
The China Securities Regulatory Commission also said on its microblog that online sales of wealth management products should comply with the regulation on fund management.
Baidu, China's leading search engine, will launch its first online wealth management product, Baifa, by the end of the month.
The minimum investment is just 1 yuan ($0.16) and Baifa users can withdraw money at any time without penalty.
Baidu will cooperate with China Asset Management Co Ltd in launching Baifa.
Media reports said the product aims to produce an annual yield of 8 percent for depositors, but Baidu later denied this, saying it will not guarantee a specific rate of return.
Internet technology giants including Alibaba, Tencent and Baidu have all drawn up plans to promote financial business based on their online expertise, wide range of clients and platforms.
In the first 18 days of being introduced, Alibaba's wealth management product, Yu'ebao, gained 2.5 million users and raised more than 6.6 billion yuan, data from Alipay shows.