Alibaba to take stake in financial services firm

An affiliate of Chinese e-commerce giant Alibaba will pay US$192.7 million dollars for a majority stake in Tianhong Asset Management, The Wall Street Journal reported, citing a filing by a Tianhong shareholder. The parent company of Alibaba’s Alipay payment processing unit will acquire a 51% stake in Tianhong. In June, the two firms teamed up to launch a service called Yu E Bao, which allows users to invest in financial products operated by Tianhong. Alibaba is taking steps to increase its presence in China’s financial services industry.