Alibaba and China Minsheng strike partnership deal

Part of Alibaba campaign supporting businesses on its platforms.

Alibaba Group, China’s largest e-commerce firm, will be able to offer financial services following yesterday’s signing of an agreement with China Minsheng Banking Corporation, Ltd, China’s seventh-largest listed bank. The tie-up with China Minsheng includes cooperating on wealth management and credit card businesses; direct banking and information technology.

Alibaba previously signed similar deals with Bank of China and China Construction Bank Corporation. The deal with China Minsheng comes as Alibaba prepares for an US$15 billion IPO in Hong Kong, probably within the year. Alibaba founder Jack Ma noted that China’s finance industry, especially the banking sector, only serves 20% of clients.

“I see the 80% of businesses that have not been served. The financial industry needs someone to shake things up. It needs outsiders to come in and transform it,” he said.

China Minsheng President Hong Qi described the cooperation as a "milestone" in the development of Internet-based finance in China. In 2010, Alibaba set up its loans business, offering credit to small businesses that used its e-commerce websites to sell their products