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Working out of a cramped 600-square-foot apartment in Beijing’s Chaoyang central business district, Jack Wang leads a team of ten customer service representatives for Qishi Club Co., an online toy seller. Each month his company racks up more than 150,000 yuan ($24,000) in sales from Alibaba Group Holding’s e-commerce platform,, which is the eBay of China.

In the past Wang would withdraw all of the funds from Alipay, the group’s payment service, and put the money in his bank, where he can earn interest ranging from 35 basis points on demand deposits to a maximum of 3.3 percent on a one-year term deposit. Since early this year, however, he has been transferring the revenue to Yu’e Bao, Alibaba’s new money market fund. The arrangement is simple, requiring just a click on Taobao’s site, and lucrative. In mid-May, Yu’e Bao was paying an interest rate of 5 percent on accounts that offer instant liquidity: Wang can make withdrawals from the fund at any time without penalty.

“Of course, we stop pulling out money and putting them into banks and instead keep all of our cash flow in Yu’e Bao,” Wang tells Institutional Investor. “On average, we keep anywhere from 300,000 yuan to 500,000 yuan on Alibaba’s platform — money that we used to keep in banks.”

Wang is not alone. At the end of April, Yu’e Bao (pronounced “yu-eh bow”) boasted an astonishing 554 billion yuan, or almost $90 billion, in assets. It also had 81 million investors, more than the combined total of all other Chinese asset managers. Considering that Alibaba launched the money fund only in June 2013, that makes it the fastest-growing mutual fund of all time, anywhere. Yu’e Bao now accounts for just over a third of China’s 1.46 trillion-yuan money market fund business, a burgeoning segment that makes up 31 percent of the country’s asset management industry. Only three U.S. money market funds — Vanguard Prime ($129.8 billion), Fidelity Cash Reserves ($116.1 billion) and JPMorgan Prime ($108.2 billion) — are larger, and they’ve been around for decades.

The fund’s rise underscores Alibaba’s tremendous innovation and potential for growth, which are expected to generate strong demand for the company’s shares. In May, Alibaba filed for an initial public offering on the New York Stock Exchange that analysts estimate could raise as much as $20 billion.