Alibaba Group, a China-based e-commerce firm, has launched a new wholly-owned subsidiary, named Shanghai Zhaocaibao Financial Service, which operates as a wealth management platform.

The e-commerce giant launched the new platform in collaboration with Tianhong Asset Management.

The platform is meant to complement the company’s existing Yu’ebao platform which provides time deposit services and currently has around 81 million users in China.

Yu’ebao will serve as a cash management tool, while the new platform will provide wealth management solutions.

Chen Zhiming, general manager of Zhaocaibao, said: "The platform will bring together different kinds of investment products issued by financial institutions, helping them reduce marketing and technology costs while diversifying choices for investors."