Tianhong Asset Management

Tianhong Asset Management Co., Ltd.
Native name
天弘基金管理有限公司
Company typeSubsidiary
IndustryFinancial services
FoundedNovember 8, 2004; 19 years ago (2004-11-08)
Headquarters
Tianjin, China
AUMUS$186 billion (Q2 2022)
ParentAnt Financial (51%)
Websitewww.thfund.com.cn

Tianhong Asset Management Co., Ltd. (Chinese: 天弘基金管理有限公司; pinyin: Tiānhóng jījīn guǎnlǐ yǒuxiàn gōngsī) is a Chinese asset management company founded in 2004. From 2014 it was considered the largest asset management company in China until 2021.[1][2] Its most notable product is the Tianhong Yu’e Bao fund which at one point was the world's largest money market fund.[3][4]

History

Tianhong Asset Management was set up on 8 November 2004.[5]

In October 2013, the Alibaba Group acquired a 51% stake in the company for 1.18 billion RMB from its original shareholders, Tianjin Trust, Inner Mongolia Junzheng Energy & Chemical Group and Wuhu High-tech Investment.[6][7][8][9] The company would be under the Ant Financial, an affiliate of Alibaba.[8][9] However, in 2014 there was a dispute between Ant Financial and Inner Mongolia Junzheng Energy & Chemical Group on the treatment of Tianhong's retained profits per the deal agreement.[8][9] Ant Financial announced it had initiated arbitration action by applying to the China International Economic and Trade Arbitration Commission.[8][10] In February 2015, the court ruled in favour of Ant Financial.[9]

In June 2013, Alipay launched a financial product platform called Yu'e Bao (余额宝).[11][12] Tianhong would partner with Alipay to launch Yu'e Bao to the public by allowing Alipay customers convert the idle cash in their accounts into units of a money market fund.[11][12][13] The product would be known as the Tianhong Yu’e Bao fund.[3] Due to the popularity of the fund, Tianhong became the largest asset management company in China.[12] In 2019, it was reported it was the world's largest money market fund, with over 588 million users, or more than a third of China's population, contributing cash to it.[3][4] However, by 2020, it was no longer the world's largest money market fund due to tighter regulation and growing competition.[14]

On 9 September 2023, Tianhong Asset Manager announced that Wang Dengfeng, the portfolio manager of the Yu’e Bao fund for over 10 years would resign from his role. The fund afterwards would be jointly managed by three portfolio managers.[15]

References

  1. ^ "E Fund overtakes Tianhong as China's largest fund manager | Asia Asset Management". www.asiaasset.com.
  2. ^ "Tianhong becomes biggest Chinese fund house | Fund Managers". AsianInvestor. 27 April 2014.
  3. ^ a b c Xie, Stella Yifan. "More Than a Third of China Is Now Invested in One Giant Mutual Fund". WSJ. Retrieved 29 November 2022.
  4. ^ a b "China's giant money market fund relaxes investment restrictions". Reuters. 10 April 2019. Retrieved 29 November 2022.
  5. ^ "Tianhong Asset Management Co Ltd - Company Profile and News". Bloomberg.com. Retrieved 29 November 2022.
  6. ^ "Alibaba's Alipay buys China fund manager to boost financial services". Reuters. 9 October 2013. Retrieved 29 November 2022.
  7. ^ Osawa, Juro. "China's Alibaba Buys Stake in Financial Services Firm". WSJ. Retrieved 29 November 2022.
  8. ^ a b c d "Alibaba Affiliate in Tussle Over Asset-Management Deal". Bloomberg.com. 7 January 2015. Retrieved 29 November 2022.
  9. ^ a b c d "Alibaba affiliate secures majority Tianghong AM stake | Asia Asset Management". www.asiaasset.com. Retrieved 29 November 2022.
  10. ^ "Alibaba Asks Gov't Arbitrator to Help It Finish Deal for Tianhong - Caixin Global". www.caixinglobal.com. Retrieved 29 November 2022.
  11. ^ a b "Financial Innovation in China: Alibaba's Leftover Treasure - 余额宝". Channels. Retrieved 29 November 2022.
  12. ^ a b c "Tianhong, the Cinderella story of Chinese investment". Financial Times. 27 November 2016. Retrieved 29 November 2022.
  13. ^ "Tianhong looks to develop equity ETFs". South China Morning Post. 4 November 2014. Retrieved 29 November 2022.
  14. ^ Detrixhe, John (28 January 2020). "China no longer runs the world's largest money market fund". Quartz. Retrieved 29 November 2022.
  15. ^ "管理余额宝10余年，王登峰卸任 | 每经网". www.nbd.com.cn. Retrieved 9 September 2023.

External links