The offshoots of e-commerce conglomerate Alibaba Group Holding
Ltd are setting up a joint venture with a major insurance company
in China, tapping into the huge potential of the country's
internet health insurance sector.
Alibaba Health Information Technology Ltd said in an after-trade
filing to the Hong Kong Stock Exchange on Thursday that it has
entered into an agreement with six other parties to establish a
joint venture, which is to engage in internet health insurance
related operations in China.
The joint venture company, which has a registered capital of 1
billion yuan ($154 million), is Alibaba's latest push into
China's nascent but rapidly growing internet insurance
"Through the joint venture, it (Alibaba Health) will be
able to participate in internet health insurance, which is a new
and promising business area that will also help align the interests
of the participants in the healthcare market," said the Hong
Kong-listed firm in the filing.
The joint venture is pending for the approval from China's
China Taiping Insurance Holdings Co Ltd, which accounts for 21
percent of the stake, is the largest shareholder of the joint
While the combined stakes held by Alibaba Health, Alibaba
(China) Technology and Shanghai Yunfeng, a private equity firm
cofounded by Alibaba Chairman Jack Ma, totals 40 percent of stakes.
TPL, Yuwell Technology and Shenzhen Baiyeyuan, account for the rest
39 percent of the joint venture.
Industry observers are not surprised by Alibaba Health's
move in health insurance as the integration of internet technology
and insurance industry has shown strong growth potential.
Ma Tao, a research director of the Beijing-based internet
consultancy Analysys International, said that it makes a lot of
sense for Alibaba Health to make foray in the sector as it has
natural advantage in data and technology.
Statistics from Analysys International showed that the internet
insurance market was estimated at 150 billion yuan in 2015, about 6
percent of the entire insurance sales in the country.
(Source: China Daily, by Meng Jing)
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The failure of a party to call a witness does not necessarily give rise to an adverse inference being drawn in accordance with Jones v Dunkel (1959) 101 CLR 298. An unfavourable inference is drawn only if evidence otherwise provides a basis on which that unfavourable inference can be drawn.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).