Alibaba Plans to Help SMEs Get CNY6bn Loans in 2009

With support from eight domestic banks, China's business-to-business (B2B) e-commerce bellwether Alibaba.com Ltd. (SEHK: 1688) plans to help small- and medium-sized companies get over CNY 6 billion loans this year in an attempt to ride out the lingering financial crisis.

The Hong Kong-listed company, which helped nearly 600 companies gain CNY 1.04 billion loans last year, will extend the plan to Guangdong, Jiangsu, Shandong, and Shanghai in 2009 and mainly offer the loans to its members, confirmed an executive from Alibaba, adding that the eight banks include China Construction Bank Corporation (SHSE: 601939 and SEHK: 0939), Industrial and Commercial Bank of China (SHSE: 601398 and SEHK: 1398), Bank of China Ltd. (SHSE: 601988 and SEHK: 3988), Agricultural Bank of China, Shanghai Pudong Development Bank Co., Ltd. (SHSE: 600000), China City Commercial Bank, and Postal Savings Banks of China.

Alibaba's revenue for the quarter ended December 2008 was estimated to jump 28% year on year to CNY 813 million but net profit was foreseen to drop 43% to CNY 267 million.