Chinese e-commerce giant Alibaba launches Internet bank
by
BEIJINGJun 25, 2015 - 12:00 am GMT+3
by
Jun 25, 2015 12:00 am
Chinese e-commerce behemoth Alibaba on Thursday launched an Internet bank aimed at serving small businesses which often struggle to obtain credit from large banks. MYbank, which is 30 percent owned by Alibaba-linked Ant Financial Services Group, said in a microblog post it will offer loans of up to 5 million yuan ($800,000).
The bank, based in the city of Hangzhou where Alibaba is headquartered, added it will serve "small businesses, individual consumers and rural users."
Alibaba completed the world's biggest IPO last September with a listing on the New York Stock Exchange that raked in $25 billion and made founder Jack Ma one of China's richest men.
The company's ambitions extend beyond e-commerce and it has already sought to shake up state banks with a financial product called Yuebao, an investment fund that offers better returns than traditional deposits. The IPO was priced at $68 and the shares rocketed to $120 in November. But since then they have been hammered by poor third-quarter results and a row with Chinese authorities who accused Alibaba of allowing imitation goods to be sold on its platform.
Alibaba said last month it would replace its chief executive despite a 45 percent gain in revenue in the January-March quarter. Profits plunged by nearly half in the period.
Last year China approved several private banks including one invested in by Internet giant Tencent, a key rival of Alibaba.
China previously had only two private banks, Minsheng and Ping An. Its state-run banks have been seen as reluctant to lend to small and medium-sized enterprises. Other major shareholders in MYbank include units of privately-owned conglomerate Fosun with 25 percent, auto parts maker Wanxiang Group with 18 percent and investment firm Yintai with 16 percent.
Keep up to date with what’s happening in Turkey,
it’s region and the world.
You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.