PBOC suspends use of virtual credit cards

Alipay to issue online credit cards

JD.com Inc, China's second largest e-commerce company by market share, is looking to invest in fund companies in an aim to smooth its way into Internet finance, Economic Observer reported on Wednesday.

According to the report from Economic Observer, JD.com has been "keeping close contact" with many fund companies, including leading fund manager Guangzhou-based GF Fund Management.

More than one small fund company has expressed its interest to partner with JD.com. It is reported that JD.com has hired a consultancy to pick potential candidates among small fund companies, which have low rankings in China's fund industry.

JD.com has not officially launched its Internet finance business, but it seems the Beijing-based firm will follow the suit of its e-commerce rival Alibaba Group Holding Ltd.

Alipay, the e-payment arm of Alibaba, began the process of buying a controlling stake of Tianhong Asset Management Co in August for 1.18 billion yuan ($190 million)

Alipay and Tianhong teamed up to launch Yu'E Bao in June last year to help Alipay users invest their spare cash in money market funds in a convenient way and get higher returns than typical bank savings.

Yu'E Bao had attracted aggregate deposits of more than 400 billion yuan by mid February, becoming the largest money market fund.