Marking its entry in financial sector
The China Banking Regulatory Commission (CBRC) has given approval to Alibaba’s financial unit for setting up a private bank, marking the e-commerce firm’s expansion in the financial services sector soon after its record $25bn US IPO.
The company is required to establish the bank within six months and seek operations license from the regulators.
Alibaba’s financial services arm Zhejiang Ant Small & Micro Financial Services Group will hold a majority 30% stake in the private bank, which is set to be established in the eastern province of Zhejiang.
Shanghai Fosun High Technology will hold a 25% stake and the remaining will be owned by several private investors.
Alibaba’s finance affiliate spokesperson told Reuters: "We will continue to serve the financial needs of small and micro enterprises and individuals by leveraging our data analysis capacity and Internet technology, and fulfil the regulatory authority’s requirement within the given time frame."
On Monday, the Chinese e-commerce major announced the purchase of a 15% stake in Beijing Shiji Information Technology for $458.66m.