Alibaba finance arm, Juneyao airline both get private bank approval

Reuters News
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Posted: Sep 28, 2014 9:56 PM

BEIJING (Reuters) - Alibaba Group Holding Ltd's finance arm received government approval to set up a private bank, China's banking regulator said on Monday, the latest step in the e-commerce company's push into the financial services sector.

Zhejiang Ant Small & Micro Financial Services Group, an Alibaba affiliate company that contains its Alipay payment processing and financial services arm, will hold 30 percent of the bank, the regulator said.

Shanghai-based Juneyao Group, the parent of Juneyao Airlines, also received regulatory approval to set up its own bank, and will own a 30 percent stake, according to the regulator.

(Reporting by Paul Carsten in Beijing and Samuel Shen in Shanghai; Editing by Edwina Gibbs)