Alibaba founder Jack Ma buys into Chinese software firm

Apr 04, 2014
Workers sort out packages at an express delivery company in Beijing on November 12, 2013

Jack Ma, the billionaire founder of Chinese e-commerce giant Alibaba, is to pay $531 million for a stake in a domestic software developer for the financial industry, a statement said.

Zhejiang Finance Credit Network Technology, which is owned by Ma, will take a 20.62 percent stake in Shanghai-listed Hundsun Technologies, Hundsun said in a statement.

Ma stepped down as of Alibaba last year, but remained as chairman to provide strategic direction.

Alibaba, the world's largest online retailer, is expected to list on Wall Street later this year.

The deal would effectively make Ma the controlling shareholder of Hundsun, the statement said, adding China's commerce ministry must still grant regulatory approval.

Hundsun provides software solutions to a range of financial institutions including banks and stock brokerages. Trading of its shares on the Shanghai market has been suspended since mid-March and will resume Tuesday.

There has been speculation Ma is planning a backdoor listing of Alibaba's microfinance services group, which is expected to be left out of the vehicle for the US .

But Hundsun dismissed the possibility of further asset injections into the company.

"Zhejiang Finance Credit and its actual controller Ma Yun (Jack Ma) are not aiming for a backdoor listing or asset injection through this deal, nor do they have any plans to inject assets or business into the company in the next 12 months," it said.

Zhejiang Finance Credit mainly provides back-office support for risk management, according to the statement.

Forbes magazine ranked Ma as China's eighth richest person last year with wealth of $7.1 billion.

Explore further: Alibaba buying media company ChinaVision for $804M

add to favorites email to friend print save as pdf

Related Stories

Alibaba buys $586 mn stake in China's Sina Weibo

Apr 29, 2013

Chinese online retail giant Alibaba has struck a deal to buy a $586 million stake in popular Chinese social network site Sina Weibo amid rumours that it is preparing for a stock market listing.

Recommended for you

Alibaba surges in Wall Street debut

11 hours ago

A buying frenzy sent Alibaba shares sharply higher Friday as the Chinese online giant made its historic Wall Street trading debut.

Alibaba makes Wall Street debut

16 hours ago

Alibaba made its long-awaited Wall Street debut Friday on the heels of a record stock offering that opens the door to global expansion for the Chinese online retail giant.

Alibaba IPO to boost employee fortunes to $8 bn

19 hours ago

Employees of Chinese e-commerce giant Alibaba will see their fortunes swell to nearly $8 billion as the company prepares a massive US stock offering that could be valued at $25 billion.

Alibaba mega IPO caps founder Jack Ma success tale

21 hours ago

When Jack Ma founded Alibaba 15 years ago he insisted the e-commerce venture should see itself as competing against Silicon Valley, not other Chinese companies. That bold ambition from a time when China was ...

User comments : 0