Money market products account for 51% of China's mutual fund assets, and Tianhong's Yu'e Bao makes up nearly a third of MMF assets. Analysts are worried about concentration risk.
Yet there are indications that demand among private individuals for exchange-traded funds and other index strategies could gain momentum – but that will take time.
Asia's asset owners have taken big strides into passive investing since 2010. Hong Kong's Hospital Authority Provident Fund and Taiwan's Bureau of Labor Funds explain why and how.
China AMC ranked top in 2015 by outright profit, and Aegon-Industrial Fund by profit yield, but industry profitability is set to fall amid stricter rules and market volatility, according to new research.
Chinese mutual fund assets nearly doubled last year to a record high of Rmb8.4 trillion ($1.3 trillion), driven largely by money-market products, which analysts say have stabilised the industry.
Chinese fund houses are increasingly selling products via smartphone, but marketing mobile platforms does not come cheap, and competition is heating up.
A wave of mutual funds employing big data-mining techniques is hitting the Chinese market, with Dacheng the new entrant. The fintech tie-ups seek to improve investment efficiency through analysis of huge data-sets.
China’s first private internet bank WeBank has launched its mobile digital platform, which will distribute six actively-managed funds from China Universal AM and Bosera Funds.
A peer-to-peer internet finance firm has acquired a mutual fund house stake, creating China's latest fund-tech partnership. Others are expected to follow suit in the wake of Alibaba and Tianhong's barnstorming success.
Industry AUM grew 52% in 2014, its fastest pace for seven years. But the craze for money-market funds lies behind it, leaving analysts to ponder risk appetite and future growth drivers.
The meteoric growth of money-market funds in China has slowed and last week's rate cut could dampen that further. Nevertheless observers expect MMFs to remain dominant.
The Chinese manager is readying an equity fund, but does not plan to bring its Yu’ebao money-market product to Hong Kong. Its vice-general president also spoke about online distribution challenges.