Chinese e-commerce group expands its financial services offering with a wealth management platform.

Alibaba Group, the China-headquartered e-commerce giant planning one of the world's biggest IPOs in New York this year, has established a new wholly-owned subsidiary that functions as a wealth management platform.

Shanghai Zhaocaibao Financial Service Information was launched in 3 April 2014 as part of a partnership with Tianhong Asset Management, the Chinese fund operator. It is meant to complement the 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.

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

Alibaba is the parent firm of Alipay, the online payment escrow service that accounts for majority of Internet-based payment transactions in China.

Separately, Alibaba is expected to raise about $15 billion in New York this year, in the biggest internet IPO since Facebook's debut in 2012.