Published on the PBOC’s official website on July 31, the new draft rules, which include security-based caps for payments, are still subject to public scrutiny and consultations. (Photo : Reuters)
After several companies decided not to use Alipay anymore as a payment platform, Alipay denies charging fund companies unreasonably high rates.
A group of fund companies such as E Fund Management, Bosera Asset Management as well as HFT Investment Management stopped their cooperation with Alipay after allegedly experiencing rising payment costs. The companies forbade their investors to purchase fund products from them by paying through Alipay.
HFT Investment Management claimed that the company's decision to move was because of the leading online payment platform's rising payment costs. The other companies are yet to cite their specific reason, but it is assumed that their decision was triggered by the same.
Alipay, however, denied these allegations. The company released a statement on Thursday saying it only changed how they are charging services fees to fund companies.
Instead of charging according to the total amount of the fund products, Alipay is now charging according to money flows generated from the subscription or redemption of the fund items.
The company denies charging fund companies higher fees and claims that the new strategy can even lower fund companies' payment costs.
"The adjustment aims to make the charging mode more simple and transparent, and it has actually lowered fund companies' payment costs," the statement read.
Alipay also said that after they adopted the new way of charging fund companies, its services charges on equity funds became lower than the previous charges and even lower than the industry level.
Even if what Alipay is saying is true, the new mode of charging is not that well-accepted either.
"The new method will weigh on fund companies' profitability, especially on monetary and bond funds with thin profits," an anonymous fund industry expert surmised.
