ALIBABA Group Holding Ltd.’s finance affiliate Zhejiang Ant Small & Micro Financial Services Group (Ant Financial) has bought a 20 percent stake in financial data provider Shanghai Suntime Information Technology Co., a source with direct knowledge of the deal said.

    Ant Financial paid 250 million yuan (US$38 million) in cash for the stake in Shanghai Suntime, a data provider tracking Chinese hedge funds, earlier last week, said the source.

    “The acquisition will provide Ant Financial with good financial products so that it can attract more clients,” the source said.

    Ant Financial, controlled by billionaire Alibaba founder Jack Ma and valued at close to US$60 billion, offers services like online payment, wealth management products and insurance. Its core Alipay online payment business was founded in 2004.

    The firm is in talks to invest in Chinese business magazine publisher Caixin Media Co. Alibaba bought Hong Kong’s South China Morning Post and last year also formed a joint venture with Shanghai Media Group Inc. to create a financial data and information service.

    With the latest acquisition, Ant Financial is tapping the potential of the nation’s rapidly-growing hedge fund industry as more wealthy Chinese turn to private managers. (SD-Agencies)