Alibaba Group Holding Ltd (NYSE:BABA)‘s application to set up a private bank in China has been approved by the government. An article on Reuters tracks the next steps and the outlook for Alibaba Group Holding Ltd (NYSE:BABA) as it extends its presence in the financial services sector.
Alibaba Group Holding Ltd (NYSE:BABA) will own 30% of the new bank through Zhejiang Ant Small & Micro Financial Services Group, which is the company’s financial services arm and also contains Alibaba Group Holding Ltd (NYSE:BABA)’s Alipay payment, according to Reuters. The other major stakeholders include Shanghai Fosun Industrial Technology Development Co Ltd, a subsidiary of Fosun International Ltd with a 25% stake, a subsidiary of Wanxiang Group is reported to hold 18% and Ningbo Jinrun Asset Management will be the owners of 16% of the new bank, as reported in the article.
Alibaba Group Holding Ltd (NYSE:BABA) will take about 6 months to prepare all the groundwork for its new addition in the company. Reuters also mentioned that during this process the company will have to apply to start operations, according to the financial regulatory authority.
An idea of the mission statement of the new bank can be gained from an e-mailed statement by a spokeswoman for Alibaba Group Holding Ltd (NYSE:BABA)’s financial affiliate that Reuters quoted in their story.
“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 fulfill the regulatory authority’s requirement within the given time frame,” said the spokeswomen.
Alibaba Group Holding Ltd (NYSE:BABA) has been the highlight of financial news lately, both before and after its IPO. The company’s humungous growth figures are a major source of traction for the retail investors and so is the Forest Gump styled story of the company that Jack Ma, Alibaba Group Holding Ltd (NYSE:BABA)’s CEO, has frequently told the media about.
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