Big banks compete with internet company funds

In the face of mounting competition from internet companies, some of China’s biggest banks are offering high-yielding online investment products despite the negative effects on margins, Reuters reported. In less than eight months, Alibaba Group Holding money market fund, Yu’e Bao, has attracted US$66.0 billion in assets under management. Industrial and Commercial Bank of China (1398.HKG, 601398.SHA), Bank of China (3988.HKG, 601988.SHA), Bank of Communications (3328.HKG, 601328.SHA) and Ping An Bank (000001.SHE) have all launched new products in recent weeks that match the attractive features of Yu’e Bao. The trend is set to hurt bank’s margins, analysts said.