Once Alibaba launched Yu'ebao, a money management service open to users of AliPay, its online payment system, it didn't take long for China's other IT giants to follow suit with forays of their own into the online financial market.

Baidu, for instance, recently announced that it would partner with China Asset Management Co to open an online wealth management platform which could offer depositors an annual yield of 8 percent.

This 8-percent promise has proved controversial, since it may in fact violate investment and securities laws which forbid fund providers from promising returns.

But since Baidu is an IT company, it is not under the supervision of banking or securities regulators. Moreover, the company has also not yet obtained a fund distribution license.

It will take time for regulations to catch up with this emerging sector, but Baidu and its peers still should obey relevant financial laws rather than trying to exploit loopholes.

The author is Cao Shuyan, a media personality.