Alibaba and Ant Financials have developed a stock index based on e-commerce data.
Alibaba Group Holding is China’s biggest company. One of the main reasons for Chinese tech giant rapid growth in the industry is due to the unmatched support of its people. The Chinese population prefers their own businesses and products to the foreign options. Hence, the company also does everything for its people; after all, it is the largest B2B business throughout the world. Therefore, the company has recently announced that with the help of its affiliates, the company has launched the first ever e commerce based stock index in China.
Alibaba Group has officially announced that its finance arm launched an e-commerce based stock index on Thursday. It is said that the system has the ability to track the activities of the company in order to measure its performance in the market. Its finance arm is known as Ant Financial Services Group, which is the owner of Alipay online payment service as well.
Various sources believed that the CSI Taojin Big Data 100 Index is the first index that has entered in the e-commerce business. It has around 100 stocks from different sectors, including food and hospitality, textiles and apparel, and household durables.
Ant testified, “The index weighs industries according to the growth in online transactions, price levels and the supply-demand situation in China. It relies on timely quantitative online payment and transaction data rather than quarterly earnings to provide investors accurate and up-to-date information.”
The tech behemoth of China has provided its finance people with a new stock index to prefer. CNBC reported that Alibaba and Ant together understand that the financial services in China have more potential to grow. The step to launch an e-commerce based index by the company is a very big step, as this will open opportunities for a fully developed internet finance platform, which will further help in launching the services, such as baking, insurance, payment systems, loans, credits, and investment to the people of China.
The general manager of Ant Financial, Yuen Lei Ming, aims to provide such wealth management services to the locals, which the traditional banking and financial institutions have failed to do so. He says, “Traditional financial institutions can only provide individualized plans for wealth management to high-net-worth individuals. But for ordinary people, they can only provide some standardized products such as deposits.” Moreover, GM expects to provide services at cheaper rates than usual and encourages other financial institutions as well.