China's leading e-commerce company Alibaba has introduced yet another new fund management program amid the seemingly endless round of obstacles being thrown its way by state-owned financial institutions.

Dubbed "Yule Bao", the new crowdfunding program allows Internet users to put their money into entertainment projects that are under development.

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These projects are either games that are currently being developed, or movies and TV shows that are about to be produced.  The program has the added perk of allowing crowd-funders to actually participate in the projects' development.

Alibaba, however, stressed to investors that there are no guarantees on profit nor on the success of the project they are funding, and that if these projects succeed, the possible return on investment may only add up to seven percent in one year's time.

This latest offering by Alibaba is expected to increase the fierce competition not only among the top Internet companies, but also against traditional banks that have always viewed China's feisty Internet sector as a threat.

As Alibaba prepares to launch its public listing in the U.S. stock exchange for an approximate US$15 Billion in new funds,  it needs to mend fences with China's biggest state-run banking and finance institutions.

The Hangzhou-based privately owned company started business-to-business web commerce in 1999 and has diversified its online services to include various types of payment and investment systems that are cheaper compared to traditional services and more often, offer better return on investments at lower costs for consumers.

Online clients reported that transfer of funds from the state-run Industrial & Commercial Bank of China Ltd, (ICBC) has just become harder.

The clients using the Alibaba payment portal Yu'E Bao, and using their bank account with Industrial & Commercial Bank of China Ltd, were advised that the bank was reducing its resources needed for bank transfers.

ICBC also advised its depositors that proper communications and coordination were undertaken with Alipay, the payment portal unit of Alibaba, to resolve problems but discussions failed.

Alipay, in response, advised affected clients to coordinate with a hotline number and use a different bank in their online transactions. However, other banks have issued limits on the amount of cash that can be transacted through Alibaba portals.

The latest incident reflects the growing animosity between Alibaba and major banks of China, a sign of a brewing major battle and chalenge to keep traditional banking institutions alive against the growth in electronic banking and finance.

Alibaba founder and chairman Jack Ma expressed confidence that the issue will be resolved and said earlier this week, "What determines success in the market shouldn't be the monopolies and those with power, but the consumers."