Business / Markets

Ant Financials secures investment from social security fund

By Ma Si ( Updated: 2015-06-18 16:53

The first direct investment from national social security fund went to Alibaba Group Holding Ltd's financial affiliate.

Wang Zhongmin, vice chairmen of National Council for Social Security Fund, said on Thursday, the organization had recently acquired five percent stake in Zhejiang Ant Small and Micro Financial Services Group Co Ltd, owner of mobile payment platform Alipay.

Referring the deal as an elephant falling in love with ants, Wang said "Seeing the boom of Internet finance, we believe the valuation of Internet financial institutions will more than double in the security market."

According to Wang's speech at an investment forum, this is the first direct investment social security fund had made but he didn't disclose the amount of the deal.

The investment is part of a broad funding plan of Ant Financial. Caixin said Postal Savings Bank of China and CDB Capital, the investment arm of China Development Bank, both acquired three percent of company's stakes.

As a pioneer in the Internet finance industry, Ant financial operates Apliay, the most popular mobile payment platform in China, which boasts 270 million monthly active users.

In 2013, it also launched an online financial fund Yu'ebao to offers consumers a way to invest their idle cash. According to the latest financial report, Yu'e Bao amassed roughly 580 billion yuan ($93 billion) in assets under management by the end of 2014, making it the largest mainland money market fund and among the largest in the world.

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