Yu E Bao's rapid development in China has aroused widespread concern. Yu E Bao is a money-market fund named "Tianhong Yu E Bao". The T + 0 redemption mechanism of the fund achieves high liquidity, while the earnings are higher than current bank deposit accounts and this promotes the marketization of interest rates. PayPal, the global third-party payment pioneer, had established a similar money-market fund in 1999. The PayPal money-market fund, which was regarded as the US version of Yu E Bao by Chinese people, experienced a glory run in this early period, but finally undertook active liquidation and closed in 2011. The rise and fall of Pay Pal has provided valuable experiences for more recent money-market funds, and for the newly emerging fintech industry in China.
