Aug 23, 2018 (China Knowledge) - Baidu received approval to sell investment funds online from the Beijing Securities Regulatory Bureau yesterday. The securities investment fund sales business license was given to its subsidiary called Beijing Baidu Baiying Technology Co., Ltd., and marks entry of Baidu into China’s USD 1.8 trillion mutual fund industry after Alibaba, JD.com and Tencent, collectively coined as BATJ.
Being the first among the BATJ, since 2015, Alibaba’s Ant Financial has obtained the fund sales license through acquisition Hangzhou Digital Fund Sales Co for RMB 200 million.
JD.com’s Jingdong Finance obtained similar license in April last year. To date Jingdong Finance has extended cooperation with insurers, securities brokers, pension funds, banks and other financial institutions.
Tech giant and largest social media company in China Tencent offers funds from its 30 over fund companies, and it is looking for more such collaboration.
Although Baidu is the latest among the BATJ its huge traffic and being the leader in search business makes it the most attractive to the fund companies. In addition, Baidu's AI will be deployed to better serve the market.
The lucrative and growing fund market in China is set to accelerate the disruption of the industry’s distribution channel by the tech giants.
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