China’s fast-rising Xiaomi is partnering with a local fund management firm to give consumers access to investment funds via a smartphone app.
The country’s largest smartphone maker is looking to compete against its domestic rival Alibaba, the country’s largest e-commerce company and provider of web-based financial services.
Xiaomi, the fourth largest smartphone maker in the world, is working with E Fund Management and aims to put the app on its MIUI operating system, which has more than 100 million users.
Alibaba’s Yu E Bao is China’s largest money-market fund, accounting for more than a quarter of investments, Bloomberg reported. Alibaba announced in April that its finance arm, Ant Financial, will set up a private internet bank in June.
Ant Financial runs Alipay, the payment method of choice on Alibaba’s e-commerce site and China’s largest online payments system.
But the two firms are also collaborating, announcing in April they are partnering to allow payments via wearable devices.