Founder Securities Co Ltd, the Shanghai-listed brokerage, has launched an online sales channel to become the first brokerage to sell products and services on a third-party e-commerce platform.

Analysts said the Changsha, Hunan province-based brokerage's new online service will help with the industry's recovery by expanding sales channels and could provide a valuable new source of sales targets through the "data-

Founder's online shop on Tmall.com, one of China's largest online business-to-commerce e-commerce platforms, sold more than 100 products within 30 hours of opening, it said, including 94 copies of a one-yuan (16 cents) wealth management software, which had previously sold for 500 yuan each.

Founder is China's eighth biggest brokerage by market value, and is the Chinese partner of Credit Suisse.

Its Tmall shop, which focuses on investment consultancy services and wealth management software, will deliver products via digital documents to buyers' e-mail accounts or mobile phones upon receipts of the payment, said Yuan Hai, its retail products general manager.

Yuan said the Tmall shop will help the growth of various Founder businesses and give the brokerage great advantages once off-site accounts are approved.

Unlike investors using Founder's own online account system, buyers do not need to have an account with the brokerage when they use the consultancy services or buy software online.

Wang Qinmei, a buyer, said his transaction was smooth and quick, and of the same quality as that from a sales office.

"Paying online for such a service will make investment more convenient - you don't have to wait for a manager to respond to your inquiries," said Wang.

China led the world at the end of last year in the number of people making online payments, according to the Payment and Settlement Department of the People's Bank of China.

"Online businesses have the advantage of having no geographical limit, which helps them win more customers.

"It also costs less to maintain a virtual shop, and is certainly less than running a branch in Shanghai," said Yuan.

Yang Zihao, an account manager with a Shanghai-based brokerage, said the impact of online shops is small so far, as investors need time to get familiar with the channel.

The latest figures show that the monthly net profit of 19 securities brokerages listed in Shanghai and Shenzhen totaled 1.84 billion yuan in February, a 30 percent drop from January.

Total revenues were was 4.9 billion yuan, down 25 percent from January. Only two of the 19 saw profit growth while 15 reported profit gains.

Founder's online shop may also help its off-site accounts business once approved by China Securities Regulatory Commission, said Yang.

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