Ant Group’s Mutual Fund Platform Reports Sixfold Jump in Profit
What’s new: Chinese fintech giant Ant Group Co. Ltd.’s mutual fund distribution platform posted a sixfold surge in net profit for the first half as increasing numbers of retail investors put their money into the hands of mutual fund managers.
The net profit of Ant (Hangzhou) Funds Sales Co. Ltd. rose 495% year-on-year to 325.3 million yuan ($50.2 million) in the first half of 2021, according to the half-year report (link in Chinese) of its second-largest shareholder, Hundsun Technologies Inc. (600570.SH), which was released Wednesday. Its revenue nearly tripled.
The context: Ant (Hangzhou) Funds Sales has become one of China’s largest mutual fund distribution platforms, with outstanding mutual funds excluding money market funds surpassing 1 trillion yuan in the second quarter, a figure unbeaten by any of its rivals, according to data (link in Chinese) from the Asset Management Association of China, an industry group.
Majority-owned by Ant Group, the company has risen to the top by taking advantage of its parent’s immense user base, offering low subscription fees, and catering to the specific demands of online investors, some industry participants said. Retail investors can buy into mutual funds issued by various companies through Ant (Hangzhou) Funds, whose services are offered in Ant Group’s hugely popular payment services app, Alipay.
Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.
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