China's 'baby boom': cradle of financial reform?

Yufenghui thinks Niu epitomizes the old guard of monopoly finance, and it is quite clear that statements from former bank bosses say more about banks' defensive situation than the vigorous new babies.

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As Yufenghui points out, a former vice president of the central bank, a former deputy director of the banking regulator and former president of the largest State-owned bank all oppose Yu'e Bao and, indeed, any online financial products.

"Dongxingguilai" declared that Yu'e Bao did not deserve such pressure because it is "neither great or vile", but basically just a money fund with successful marketing.

Other netizens just mocked Niu for "boldly" comparing the central bank to a vampire.

In fact, traditional banking is simply chasing the market. Products like "Xian Jin Bao" (Cash Treasure) and "Li Cai Tong" (Finance Key) have been cobbled together by traditional banks, rendering Niu's "parasite" metaphor something of a shambles.

The key to the dispute lies in the decisive role of market, as stressed in China's current economic reform, in setting interest rates on deposits and loans. The days of easy money from huge interest margins will soon be gone for the commercial banks, as the new babies take their first tottering steps.

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