Ant Financial backs Chinese insurance firm

The participating investors were organized by Hong Kong-listed China Chuanglian Education Group, which will manage the company as a subsidiary, according to a regulatory filing. China Chuanglian will invest RMB25 million ($3.8 million) of its own funds in Xinmei Mutual; the rest of its initial working capital, expected to total RMB1 billion, will come from the other investors.

The promoter group includes Tianhong Asset Management, another affiliate of Alibaba Group. Bought by Alibaba in 2013, Tianhong manages the highly popular Yu'e Bao money market fund.

China Chuanglian provides online training and education services in China, mainly focusing on vocational training. The company hopes to leverage its online experience and established internet platforms to create a new network for marketing and purchasing mutual insurance products, which have been promoted by China's insurance regulators as well-suited to customers with insurance needs that are not covered by commercial or social insurance companies. China Chuanglian has obtained approval from the China Insurance Regulatory Commission to launch the firm.

Ant Financial has supported a number of Chinese companies that use the internet for innovative approaches to finance. Previous investments include Qufenqi, an electronics retailer that allows buyers to pay in installments, and 36Kr.com, a Chinese news portal that covers venture capital and technology start-ups.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Financials
• Technology
• China
• Alibaba Group
• insurance