The Development Analysis Of Money Market Fund

June 5, 2013, Alibaba’s Alipay announced the balance of value-added service called "Yu’ebao ", the user can be stored in Alipay money in the Alipay website to buy money market funds and other financial products directly, but also to ready for online shopping, transfers, etc. Yu’ebao is the emergence of the Internet thinking and effective combination of money market funds, on China’s financial markets has had a profound impact. This paper describes the process of Yu’ebao ’s generation, capital operation mode, the impact of changes in income levels and Its influence on commercial banks, and for Yu’ebao, the Internet money-market funds to conduct a comprehensive analysis of this case. Meanwhile,by the SWOT analysis of Yu’ebao, the external threats facing Yu’ebao is mainly the competitive environment and the uncertain policy environment, especially regulators on Yu’ebao’s attitude is not clear, it faces major external opportunities are enormous market potential, product diversification and the Internet computer network technology support. Yu’ebao faced internal strengths mainly Alipay platform as the basis, the market potential; the "long tail" instead of "Pareto rule", get a huge customer base; with traditional financial products with a relatively high income, high liquidity and low risk. Meanwhile Yu’ebao compare with traditional financial products are also facing higher liquidity risk, decrease credit risk, operational risk and yield problems caused. Proposed the development of diversified products to enhance liquidity risk management, improve the credit system and proposals to strengthen operational management in order to better the future of Yu’ebao’s development in China in the development process for deficiencies. Finally, the case of Yu’ebao’s profound analysis and recommendations made, make a few practical suggestions for the development of our country in the era of Internet banking money market funds, including: cooperation with the e-commerce platform and third-party payment platform, expanding fund sales channels; big data in money market funds in the application, the depth of excavation customer value; positive development "T+0" style money market funds, strengthening financial innovation; strengthening financial risk control Internet era money market funds.