Cai Chongxin, chief financial officer of the Chinese B2B e-commerce giant Alibaba Group, has announced in an internal email that the group will set up a fund management company that will focus on the second-tier market and the company will be led by Xiong Xiong, former CEO of Libra Capital.

Cai said the establishment of the fund company will improve the group's financial management power and enhance its insight into the macro-environment within China, so as to help Alibaba gain more reasonable returns in cash operation.

Founded by Xiong at the end of 2007, Libra Capital was later fully acquired by Alibaba Group and Xiong with his team joined the fund management company of Alibaba. Before the founding of Libra Capital, Xiong worked for Goldman Sachs as chief representative for Shanghai office and China chief researcher for Goldman Sachs Asset Management.