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Alibaba Affiliate Gets Approval to Launch Private Bank in China [ICN.com Financial Markets](ICN.com Financial Markets Via Acquire Media NewsEdge) An affiliate of Chinese e-commerce mammoth Alibaba has received approval to set up a private bank by the China Banking Regulatory Commission, part of an extensive effort to proved easier financing options for small, privately owned companies. The Alibaba financial affiliate received a license on Monday to open a bank in the east coast city of Hangzhou, where the Alibaba Holdings Group has its headquarters. Alibaba will partner with Fosun, a large private conglomerate in China to form Zhejian Internet Commerce Bank. The bank "will mainly satisfy the investment and financing needs of micro-companies and individual consumers, which refer to deposit products under Rmb200,000 ($32,500) and loan products under Rmb5mn," Fosun said in a statement. Small, privately owned companies are finding it difficult to obtain capital, as China's banking system is dominated by large state-owned institutions that usually favor lending to big corporate borrowers. This is hoped to fill the needs of small companies, who are estimated to contribute about 60% of Chinese gross domestic product, and nearly 75% of new jobs in the economy. The China Banking Regulatory Commission said in March its intention to give banking licenses to 10 separate companies. (c) 2014 ICN.COM. ALL RIGHTS RESERVED Provided by SyndiGate Media Inc. (Syndigate.info). |