(Yicai Global) April 7 -- Yunfeng Financial Group Ltd., owned by Alibaba Group Holding Ltd. [NYSE:BABA] founder Jack Ma, has rolled out Youyu Zhitou, a smart investment advisory application, in Hong Kong.
The app, which is the first smart investment consulting service launched in Hong Kong, is being seen as a landmark innovation in the city's fintech sector and is attracting a lot of attention from investors.
Yunfeng hopes the rollout will help fulfil individual investors' wealth management needs, said Li Ting, chief executive, at a launch event yesterday.
All the asset allocation recommendations are provided by a smart investment model and no extra fees will be charged, the company said. Transaction costs for fund purchases and sales via the app are substantially lower than those via traditional sales channels.
Commission fees on fund purchases via the app are about half of those charged by retail banks, at an average of 1.5 percent, said Wang Shuying, head of the Youyu Zhitou team, adding that it's also more convenient to open an online account through the app than to visit a bank in person.
Although the app has been released in Hong Kong, mainland investors are able to open an account without having to visit the special administrative region, allowing them to invest in overseas funds while at home, Li said.
Smart investment consultants, or robo-advisors, are a hot topic in fintech innovation. Unlike traditional investment advisors, smart consultants can build tailored portfolios for clients with differing appetites for risk, and offer recommendations on subsequent adjustments and re-balancing.