My understanding is this: After Yu'e Bao collects some scattered funds, it needs to consider how to invest, which investments will have high returns, and whether to invest in one direction or several directions?

There are more discussions now. After reading the news, I feel that Yu’e Bao has invested most of its investment in bank agreement deposits. The proportion seems to have reached 92.5%. What is this bank agreement deposit?

Some private banks will be short of money and need to lend money at a high interest rate. Yu'e Bao has this money, so those banks that need money will enter into agreement deposits with Yu'e Bao. The interest rate is not fixed. Many banks are short of money during the Chinese New Year period.

Therefore, the corresponding income of Yu'e Bao is high. Individuals cannot sign this agreement deposit with the bank. They can only borrow from each other, or the bank borrows from the fund company.

If Yu'e Bao keeps investing in this bank agreement deposit, it will not lose money. If it does, it must be because those private banks have collapsed, and Yu'e Bao cannot invest in this, so it may lose money.

Hope my answer is helpful to you.