The China Banking Regulatory Commission said it gave approval to start a bank to a financial affiliate of the Alibaba Group, that is also the parent of Alipay who handles payment transactions and thus is crucial to Alibaba’ operations. The bank would be headquartered in Hangzhou. The financial affiliate of Alibaba will own 30%. The Shanghai Fosun High Technology Group will hold a 25% stake and the rest will be owned by private investors. Alibaba can begin setting up the bank but still needs to obtain a banking license from the regulators before it can open for business.
Source: Wall Street Journal