ALIBABA Group Holding Ltd.’s online payment affiliate is set to roll out its first wealth management product Friday, as Chinese Internet companies move deeper into financial services.

    The affiliate, Alipay, this week began allowing users of its Yu’E Bao investment service the right to put their money into the wealth management product when it launches. In China, wealth management products are deposit-like investments offering higher returns for a fixed period than banks offer on a typical savings account.

    Alipay said it would offer investors an annualized return of 7 percent, while their principal also will be guaranteed. The product will have a maturity of one year. As of Tuesday, more than 1.4 million users had made reservations for the coming investment product.

    Alipay, owned by Alibaba Small & Micro Financial Services, processes payments for Alibaba’s Tmall and Taobao shopping sites.

    The latest product marks the continuing proliferation and evolution of financial services offered by China’s large Internet companies. In June, Alibaba began offering Yu’E Bao, a money-market-like fund that allows investors to withdraw money instantly. China’s Tencent Holdings Ltd. and Baidu Inc. have since launched similar products.

    Yu’E Bao and its rivals present a challenge to China’s banking industry. The one-year benchmark deposit rate set by China’s central bank now stands at 3 percent, meaning banks can offer depositors a maximum rate of 3.3 percent for one-year time deposits under government rules. (SD-Agencies)