According to reports in Chinese local media, Zhejiang China Commodities City Group and Alibaba will jointly invest to establish a joint venture company.

Based on the agreement signed by the two parties, the joint venture will have registered capital of CNY50 million. China Commodities City will invest CNY25.5 million to hold a 51% stake; while Alibaba will invest CNY24.5 million to hold a 49% stake.

The joint venture will have five board members who will be elected by shareholders of the joint venture company. Three of them will be nominated by China Commodities City and two will be nominated by Alibaba.

China Commodities City Group said that the joint venture would help build Yiwu eWTP digital trade hub and form a free circulation network of global commodities with overseas digital trade hubs. With trade data retention, it will actively assist companies to expand supply chain financial businesses; meanwhile, depending on the eWTP system, it will further develop export, import and re-export trade to better serve SMEs and micro enterprises from all over the world.