Chinese billionaire Jack Ma, who is credited for founding the world’s largest e-commerce firm Alibaba Group Holding, is investing USD 531.78 million to gain a controlling share in Hundsun Technologies Inc, a financial software firm.
Hundsun Group-that controls a 20.6% stake in Hundsun Technologies-would sell its entire stake in the latter to Zhejiang Finance Credit Network Technology Co, a company in which Ma owns a 99% stake.
This deal will render Ma a controlling stake in Hundsun technologies, according to a statement filed by the company at the Shanghai Stock Exchange.
This move is one among many planned by Ma to redefine and modernize the Chinese financial services sector. Earlier, Joe Tsai-an Alibaba veteran-had described the country’s financial services sector as being ‘antiquated’. Tsai is steering Alibaba’s U.S. listing, which is high anticipated.
Over the last few months, a number of Chinese internet companies such as Tencent, Alibaba, and Baidu Inc have either already set up or are in the process of setting up a financial services arm. This has irked the entrenched banks in China and has also led the regulatory authorities to intensely scrutinize the actions of such financial services firms and the online financing segment that are emerging.
Hundsun Technologies said that the listed company as well as its shareholders will have an independent approach to the structure, operations, HR, finances and capital of the company.
Over the next one year, Hundsun has no express plans to switch over from the main business of the company, nor will it bring in any other adjustments that are significant in nature. It will continue providing financial IT services and products