Analysis On The Yield-risk Of Yu’ebao

As the combination of the Internet and the Financial products such as Insurance,Funds, etc., becomes more and more closely nowadays, lots of financial products,which featured as Internet-related financial results, have been sprung up. Amongwhich are four powerful and well known products: the “Alipay”(an online paymentssystem) for payment and clearance,“Ali Loans”(Alibaba loans specially formedium and small sized companies) for financing,“Yu’ebao”(a money market fundsby Alipay）for investing and financing and“Zhonglebao”(an online insurance serviceby Zhong’an group) for insurance and online shopping security. The open andtransparent characteristics of the Internet can greatly improve the situation ofinformation asymmetry, and it is very convenient, quick and cost effective, whichenable the Internet related financial products a merit of gifted generalized preferences,and help greatly in boosting the extensification, plebification and humanization of thefinancial system. However, it is always the case that any fangle needs a long and hardway for developments and improvements. The internet related financial products areno exception. Problems such as the lack of supervision, the risks of computortechnology, the troubles on credit exchange and the incomprehension of public makethose financial products much more riskful compared with traditional financialproducts.Based on this situation, the thesis select“Yu’ebao”, who has the largest numberof users, as the research subject, trying to dig into its inspiration and significance. Bysearching and researching all kinds of related information, the essay firstly gives anintroduction of the structure and fund flow of“Yu’ebao”, and leads to the conclusionthat “Yu’ebao” is actually an online direct selling monetary fund like Tianhong“ZengliBao”. According to the analyses of the internal factors and the externalfactors of China’s regulation system and public demands on which “Yu’ebao” isgenerated, the essay then points out that “Yu’ebao” is an inevitable product on such occasion. And then, with closely researches on the related data of “Yu’ebao” andTianhong “Zenglibao”, the article further analyzed the characteristic of yield-risk of“Yu’ebao”, and its factors of yields and risks. Fourthly, the essay takes intoconsideration the features of “Yu’ebao” itself and offers a research on theadvantages&disadvantages, opportunities&challenges of “Yue’bao”, which leadsto the analyses of its effects on Bank, Funds, Supervisor system and the Public, andpredicts the development of “Yu’ebao” in following years. Finally the thesisintegrates the earlier analyses and get the conclusion that “the network is a trendy forfuture financial industry”, and offers some feasible advices.