According to WeChat, the number of Li Cai Tong users exceeded 10 million and the fund was over RMB100 billion one year after its launch.
Li Cai Tong generated RMB3 billion profit for its users; one user made RMB 45 thousand in one year. Tier 1 cities had highest demand for such product; the average profit from Li Cai Tong among users in Shanghai was RMB897 followed by those in Beijing with RMB851.
30% users prefer to buy wealth management products between 10pm and midnight, most of which are between 30 and 45 years old office workers. 61% are male.
Li Cai Tong is Tencent’s challenge to Alibaba’s Yu E Bao on WeChat, another online money market fund product.
Tian Hong Fund released the news on 5 January 2015 that as of 31 Dec 2014, Yu’E Bao’s exceeded RMB578.9 billion (US$94.09 billion), contributing over 98% of Tian Hong Fund’s total capital. In Q4 2014, Ye’E Bao increased by RMB44 Billion (US$7.15 Billion) from Q3 2014 while Tian Hong Fund management company’s total transaction value increased by RMB41.8 Billion (US$6.79 Billion) in the same period.
Read more: E-banking Replacing Over 80% of China’s Banking Transactions