Alibaba launches Internet bank

Chinese e-commerce behemoth Alibaba on Thursday launched an Internet bank aimed at serving small businesses which often struggle to obtain credit from large banks. MYbank, which is 30-percent owned by Alibaba-linked Ant Financial Services Group, said in a microblog post it will offer loans of up to 5 million yuan ($800,000). The bank, based in the city of Hangzhou where Alibaba is headquartered, added it will serve “small businesses, individual consumers and rural users.” Alibaba completed the world’s biggest IPO last September with a listing on the New York Stock Exchange that raked in $25 billion and made founder Jack Ma one of China’s richest men. The company’s ambitions extend beyond e-commerce and it has already sought to shake up state banks with a financial product called Yuebao, an investment fund that offers better returns than traditional deposits. The IPO was priced at $68 and the shares rocketed to $120 in November. — AFP