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Fintech Platforms and Mutual Fund Distribution

Author

Listed:
  • Claire Yurong Hong

    (Shanghai Advanced Institute of Finance, Shanghai Jiao Tong University, Shanghai 200030, China)

  • Xiaomeng Lu

    (Fanhai International School of Finance, Fudan University, Shanghai 200433, China)

  • Jun Pan

    (Shanghai Advanced Institute of Finance, Shanghai Jiao Tong University, Shanghai 200030, China; China Academy of Financial Research, Shanghai 200030, China)

Abstract

We document a novel platform effect caused by the emergence of fintech platforms in the intermediation of financial products. In China, platform distributions of mutual funds emerged in 2012 and grew quickly into a formidable presence. Utilizing the staggered entrance of funds onto platforms, we find a marked increase of performance chasing driven by the centralized information flow unique to fintech platforms. This pattern is further confirmed using proprietary data from a top platform. Examining the platform impact on fund managers, we find that incentivized by the amplified performance chasing, fund managers increase risk-taking to enhance their probability of getting onto the top ranking.

Suggested Citation

  • Claire Yurong Hong & Xiaomeng Lu & Jun Pan, 2025. "Fintech Platforms and Mutual Fund Distribution," Management Science, INFORMS, vol. 71(1), pages 488-517, January.
    • Handle: RePEc:inm:ormnsc:v:71:y:2025:i:1:p:488-517
    DOI: 10.1287/mnsc.2022.01966
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