Alibaba raises stake in China funding financial institution CICC

Alibaba raises stake in China investment bank CICC

Alibaba has joined rival Tencent as a shareholder in one in every of China’s most storied funding banks, in a extremely uncommon transfer for the tech duo who extra usually carve up the enterprise panorama between them.

Alibaba has raised its stake in funding financial institution China Worldwide Capital Corp (CICC) to 4.84 per cent, bringing it near the 4.95 per cent stage arch rival Tencent achieved when it invested $370m in CCC in 2017. The funding will make Alibaba CICC’s third-largest shareholder behind Tencent and Central Huijin, a unit of China’s sovereign wealth fund, China Funding Corp (CIC).

Tencent and Alibaba, China’s Most worthy corporations, compete fiercely in a number of areas, from ecommerce and leisure to funds. Each have giant funding portfolios in overlapping sectors — usually resulting in huge money burn as seen within the battle waged in meals supply between Tencent-backed Meituan-Dianping and Alibaba’s

Rivalry has additionally spilled over into the hiring {of professional} advisers, with bankers and attorneys griping about being advised to decide sides: Ant Monetary, the Alibaba funds affiliate, made plenty of banks signal what had been described by one banker as “very restrictive non-compete” agreements stopping them from working for Tencent entities.

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