Alibaba’s private bank approved

CHINESE e-commerce giant Alibaba, which completed the largest stock offering on record earlier this month, has received approval to set up a private bank. The China Banking Regulatory Commission announced yesterday that Alibaba would be the controlling shareholder with a 30 percent stake in a private bank to be established in the eastern province of Zhejiang, where the company is headquartered. Alibaba’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. Other major shareholders in the newly approved bank include units of privately owned conglomerate Fosun with 25 percent, automotive parts maker Wanxiang Group with 18 percent and investment firm Yintai with 16 percent. – Sapa-AFP