Alibaba gets green light to open bank   

(Photo: Baidu)

Beijing(ECNS) – Alibaba Group Holding has got approval from the China Banking Regulatory Commission to set up a commercial bank in Hangzhou, Zhejiang province.

Named the Zhejiang Wangshang Bank, it will be jointly launched by Alibaba's subsidiary Zhejiang Mayi Microfinance Services Group Co., Ltd., Shanghai Fosun Industry and Technology Development Co., Ltd., Wanxiang Group and China Yintai Holdings Co., Ltd.

Alibaba will get a 30 percent stake, while the other three companies will hold a 25 percent, 18 percent and 16 percent stake respectively. The bank plans to attract other shareholders in the future.

Persons with Mayi said the bank is an Internet finance bank by nature that mainly serves small businesses and individuals. It will provide deposit products lower than 200,000 yuan ($32,000) and loan products of less than 5 million yuan ($800,000).

Analysts say the bank will help Alibaba gain greater control over its financial services, including its online payment and wealth management products.

The bank will be officially launched in six months.