After entering 2018, Alipay has more and more restrictions on users, and Alipay users also find that the interest of balance treasure is getting lower and lower. What is the reason why yu'ebao's revenue is getting lower and lower? Let's find out.
Annual interest rate trend of yu'ebao
Yu'ebao interest rate rose and fell in the first three quarters of last year, generally fluctuating around 4%. However, after the roller coaster market, the annualized yield rose rapidly in the first 7 days and then fell back rapidly. After a short period of stabilization, the yield began to fall again in March, reaching the lowest level of 3.78% in nearly a year. There is no sign of stopping the decline.
Reasons for the decrease of yu'ebao's income
1. Too large
The scale of Tianhong Yuebao money market fund increased from 1579832 million reported in the fourth quarter of 2017 to 1689185 million reported in the first quarter of 2018, with a growth rate of 6.92%. In the case of yu'ebao limited time limit for sales and purchase, the growth rate is still so rapid, which is very terrible.
2. Increased cash ratio
From the fourth quarter of last year to the first quarter of this year, yu'ebao's cash assets increased from 56.65% to 61.03%, and its total assets increased from 1580695 million yuan to 1695087 million yuan. Let's estimate that the average of total assets is 1637891 million yuan, with 4.38% new cash assets and 3.2% less bonds. That is to say, about 71.74 billion people's earnings have declined, most of which have fallen from bond level to deposit level.
3. Yu'ebao upgrade
After the upgrade of yu'ebao, the newly added two monetary funds (Boshi cash income currency a and China Europe roll money treasure a) haven't had time to build a position, but they want to share the income of Tianhong Monetary Fund equally, so the relatively higher income will be shared out by the new funds, so that the 7-day annualized yield will fall.
As the largest market fund in the world, Tianhong fund has a large scale, which will inevitably affect the operation of the market and bring certain risks. Therefore, the regulatory authorities will avoid system risks. But now people keep money in yu'ebao and earn more interest every day than the bank. For ordinary people, the decrease of yu'ebao's income will not have a great impact on people.