Regulatory Questions over Online Investment Service Linger

(Beijing) – In the two weeks after it launched, the Yu E Bao online investment service offered by Alibaba Group has been warmly welcomed by investors.

But questions over the nature of the service and who has regulatory responsibility have been a cause for concern. Also, regulators have raised questions over how the funds in its accounts are managed, and they have said the company is downplaying the risk to investors, which could lead to larger problems down the road.