Study On Ant Finance's Impact On Chinese Financial Industy

Aibaba Group is the TPO1 e-commerce in China and Top2 e-commerce in the world.On Sep.19th 2014,Alibaba Group issued the largest IPO in the world which is up to $25bn.In June 2013,Alibaba Group launched the first mutual monetary fund-Yu'e Bao and made big success.After that Alibaba Group has developed financial products and services with a fast pace.In October 2014,Ant Financial Group was established by Alibaba Group.Ant Financial Group has covered savings,loan and currencies financial fields.In February 2015,Alibaba Group announced that Ant Financial Group had already finished restructuring and Ant Financial Group turned into the independent legal entity.Ant Financial Group launched innovative financial products,services and business models and attracts small and medium sized investors to enter into the financial market.Ant Financial Group has shocked the traditional financial industry and pushed the Internet financial industry to move forward in great pace.The development of Ant Financial Group is under the background of Chinese Financial Reform.The central government has quickened the reform steps.The central government on the one hand aided the development of internet finance and on the other hand made more close supervision.In recent years the central government has encouraged the development of microfinance to solve the financing problem of private enterprises.Hence,small and medium sized enterprises could develop fast.This thesis reviewed and generalized the origins and characters of money market in comparison with Ant Financial's creative products and services.Furthermore this thesis discussed the reformation of traditional finance market which is caused by Ant Financial Group.This thesis introduced the key platform of Ant Financial Group-Yu'e Bao,Zhao Caibao,Cun Jinbao,Sesame Credit and Third Party fund platform.This thesis gave insights into the business model,creative financial products and services,competitors and challenges,economic and social benefits.Yu'e Bao impacts on interest marketization,commercial banks and fund market.The third part fund platform impacts on the fund market.Zhao Caibao impacts on the P2P platform,private loans and fixed term products.Cun Jinbao impacts on golden market and golden ETF funds.Sesame Credit impacts the credit rating and recording systems of China.All the impacts will be discussed deeply in this thesis.Finally,the thesis will discuss the advantages and disadvantages of financial products and business models which were launched by Ant Financial Group and makes recommendation.