Chinese Internet giant Baidu Inc is negotiating with leading domestic fund companies to offer customized fund products, according to a report from China Securities Journal on Thursday.
Sources told the paper Baidu hopes the fund companies will issue attractive products offering high returns, low risk and good liquidity.
With Alibaba Group Holding Ltd actively expanding in China's Internet finance sector, Baidu is also showing a willingness to explore the online finance market. Baidu has already launched its beta version of a Baidu Finance website, to help people search for financial services.
In July, Baidu received a third party payment license from the People's Bank of China, the central bank, to conduct related online payment services within the country. Baidu started investigating an online payment service as early as 2008 but the company's enthusiasm cooled with the fall of its e-commerce business Baidu Youa.
Alibaba's online payment affiliate Alipay introduced a fund service called Yu'ebao in June, allowing users with money stored online to invest in a fund pegged to corporate debt and government bonds. People can deposit and withdraw from the fund anytime without paying penalties.
The fund service offered Alipay's users a chance to get higher returns than the roughly 0.35 percent interest rates offered by savings accounts with commercial banks and the 3 percent one-year deposit rate.
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