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The Payment “Pals” and China’s Financial Revolution (Chinese and English versions)

Payment “Pals” have exerted significant pressure on the Chinese finance sector since Yu’ebao’s rapid emergence in 2013.

Payment “Pals” have exerted significant pressure on the Chinese finance sector since Yu’ebao’s rapid emergence in 2013. Internet finance has not only improved financial returns for small investors, but has had a much bigger effect on financial management nationwide, by breaking down the high walls of Chinese financial repression. The government has profited from collecting long term inflation tax for its own financing use. The Payment “Pals” by providing a safe channel to access financial assets via the interbank market, have offered investors high interest, which has broken the pattern of government financial repression.

Case advisor: 
Li Wei
Case writer: 
Gu Chongqing
Keywords: 
finance, investment