JD.com to take 33% stake in Allianz China unit

Beijing

JD.COM Inc will invest 536.6 million yuan (S$112 million) for a 33 per cent stake in the China unit of global insurance giant Allianz SE, the companies said, as part of the Chinese e-commerce firm's push into financial services.

The investment will make JD.com the second largest shareholder in Allianz China, said the insurance firm in a filing on Monday.

JD.com spun out its finance unit in 2017 and earlier this month Reuters reported that it aims to raise US$1.9 billion in fresh equity that will potentially double the unit's value to US$20 billion yuan.

JD Finance offers consumer-facing financial products including wealth management and credit services, which compliment sales on its e-commerce platform.

The firm's investment in the Allianz unit comes as other Chinese tech firms are also investing heavily in the country's burgeoning online finance sector, including top e-commerce rival Alibaba Group Holding Ltd and search firm Baidu Inc.

"Allianz and JD.com have entered into a long-term partnership to develop a digital insurance joint venture in China. We expect this type of insurance to give consumers even greater confidence when buying online," said JD.com in an e-mailed statement on Monday.

JD.com's investment is still subject to approval from the China Banking Regulatory Commission, said Allianz in the filing. REUTERS