Securities firm rolls out Internet finance product

Sinolink Securities Co Ltd debuted on Thursday an online brokerage service called "Yongjinbao," a product that analysts say could usher in the "zero commission fee era" in the securities industry.

Investors who open up an account via the stock section of Web portal qq.com or Sinolink's official website will be entitled to a reduced commission rate of 0.02 percent for Sinolink's brokerage services, the firm announced on its website.

This is the first online financial product the company has rolled out after a strategic cooperation agreement made with Tencent Holdings Ltd in November last year.

Besides the ultra-low commission rate, Yongjinbao will also offer customers value-added services and consultations, Sinolink Securities said.

Analysts say a 0.02 percent commission means securities firms won't gain any profit through brokerage services and qualify as a game changer.

"We believe Internet finance will be very different with the traditional business model, as the greatly enlarged customer network and low cost in engaging these customers will help us make a profit even at a ultra-low commission rate," a staff member with Sinolink Securities told the Global Times Thursday on condition of anonymity.

Sinolink Securities will also manage the money left in the customers' accounts, with an expected return rate ten times that of current savings.

Analysts said the decrease in commission rate will become an industry trend, and Sinolink's new product has accelerated this process.