Alibaba sets up bad-loans auction site

Alibaba Group Holding Ltd is creating a new financial business on its online platforms - auctioning off non-performing loans for asset management companies.

The e-commerce giant has announced a strategic partnership with China Cinda Asset Management Co to help dispose of troubled assets.

Cinda, one of four State-owned managers of soured loans in China, will auction its 4 billion yuan ($645 million) of bad assets on Alibaba's flagship online marketplace Taobao. The process is set to start on June 20.