Published by Hubbis – 21st May 2019
Hong Kong’s GaoTeng Global Asset Management, a joint venture between China’s Tencent Holdings and Hillhouse Capital Group, has tied up with local online broker Futu Securities to launch a new service called Money Plus.
A cash management service that lets the brokerage’s clients invest in the asset manager’s new money market fund. Investors who have accounts with Futu Securities can transfer idle cash into the GaoTeng WeFund-GaoTeng WeInvest Money Market Fund.
The online money transfer is done through a proprietary app belonging to Futu Securities. The money market fund, which was launched in March, invests primarily in Hong Kong dollar, US dollar, and RMB-denominated debt instruments with short maturities.
According to a GaoTeng CEO Wayne Bi, the fund’s redemption mechanism “creates potential for wealth management product innovation with traditional distributors such as banks and security brokers. The efficient redemption mechanism of Money Plus could help investors to fully utilise money. The combination of money market fund and security margin is a milestone for Hong Kong security brokers in idle money management.”
The money market fund is one of two fund products introduced by GaoTeng since the company was launched in 2015. GaoTeng is a 51%-49% joint venture between Beijing-based private equity manager Hillhouse Capital and Shenzhen-headquartered Tencent Holdings.
Tencent Holdings is one of the largest technology conglomerates in the word with USD113 billion in total assets. Hillhouse Capital Group currently has USD50 billion AuM. Futu Securities mainly provides online brokerage services in China and Hong Kong and has over five million users.
