BEIJING, April 3 Jack Ma, the founder of China's
Alibaba Group Holding Ltd, the world's biggest
e-commerce firm, will pay 3.3 billion yuan ($531.78 million) to
take a controlling share of financial software firm, Hundsun
Hundsun Technologies said on Thursday that Hundsun Group,
which owns a 20.6 percent stake in Hundsun Technologies, will
sell 100 percent of its shares to Zhejiang Finance Credit
Network Technology Co, a company 99 percent owned by Ma.
That will give Ma a controlling share of Hundsun
Technologies, the company said in a statement to the Shanghai
Ma's move underscores his desire to move into and reshape
China's financial services sector, an area that Alibaba's Joe
Tsai, the man steering the company's highly anticipated U.S.
listing, described as "antiquated".
Chinese Internet companies like Alibaba, Tencent Holdings
Ltd and Baidu Inc, are all setting up
financial services arms, drawing the ire of China's entrenched
banks and attracting increased scrutiny from regulators, who are
now debating stricter regulation of the emerging online finance
"The listed company and its shareholders will maintain
independence in regards to its human resources, capital,
finances, structure and operations," Hundsun Technologies said.
In the next 12 months Hundsun has no plans to change the
company's main business and does not plan to make other
significant adjustments and will still provide financial IT
products and services, according to the filing with the Shanghai
Ma will not list his Zhejiang Finance Credit Network
Technology through Hundsun, the company said.
Alibaba had previously been in talks with Hundsun
Technologies and Hundsun Group about investing, Caixin reported
Hundsun is China's biggest software provider for trading
securities and fund companies, Caixin reported a source as
The deal also raises concerns that access to Hundsun's
financial data may give Alibaba's online finance arm an unfair
advantage, Caixin said.
Alibaba's affiliated Alibaba Small and Micro Financial
Services Group is also buying a controlling stake in Tianhong
Asset Management Co, which runs a China's biggest money market
fund, sold through Alibaba's online payment arm.
Hundsun Technologies declined to provide further comment.
A telephone number provided by Ma's Zhejiang Finance Credit
Network Technology Co directed callers to Alibaba's Hangzhou
offices, where the company is based and a job advertisement
listed the company's website as Alibaba.com.
Alibaba declined to comment.
($1 = 6.2056 Chinese yuan)
(Reporting by Paul Carsten; Additional reporting by Beijing