Dallas, Texas 03/13/2014 (FINANCIALSTRENDS) – BaiduInc (ADR)(NASDAQ:BIDU) the China-based internet search engine services provider, in Chinese has since commenced on a new venture – private banking. After a successful start as a wealth management platform provider, it has now moved to new verticals of the financial domain in China. But of course, this is not the only chinese technology domain player to enter banking and financial services segment. Before it Alibaba an ecommerce giant and Tencent also holds sway on the online wealth management platform with a range of prodcuts.
Chinese ecomm retailers move to the private banking platform
BaiduInc (ADR) (NASDAQ:BIDU) has been quick to move into segments which are viewed to hold great potential in the vastly diverse Chinese economic scene. With both Alibaba and Tencent making successful forays into the private banking and savings system, it was not long before Baidu too would make an attempt to penetrate this segment.
According to the CEO of China’s largest online company, Robin LI, BaiduInc (ADR)(NASDAQ:BIDU) simply cannot resist the chance of being present in a business segment which the internet is expected to soon topple. This includes the finances domain, the chief executive clarified.
For these Chinese players, the high savings-sentiment by Chinese citizens has led to these forays. As Chinese middle class look for higher-paying returns on their small savings, these private players are able to supersede conservative return percentages government –backed banks are able to offer. In the recent weeks, Alibaba made a futile attempt, via its Bao platform, to acquire a fund manager- Tianhong Asset Management. More than three of the state owned banks refused to conduct interbank transactions following Alibaba’s bid to purchase 51% in this fund for a total of $193 million.
Besides, the political atmosphere in China too holds great promise for private banking if statements issued by Premier Li Keqiang are to be believed.