Alibaba founder Jack Ma is paying up to 3.29 billion Yuan (US$530million) for a controlling stake in a Shanghai-listed major financial software company, Hundsun Technologies.

Ma, through his Zhejiang Rongxin Technologies, signed an agreement to acquire 20.6 percent of Hundsun, giving him a controlling stake in the company that provides financial services to clients in mainland China and Hong Kong.

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Ma will buy shares from Hundsun Group, which is selling 100 percent of its 20.6 percent stake in Hundsun Technologies. The deal was approved by the 17 individual shareholders who own Hundsun Group.

The transaction, however, will require the regulatory approval of China's Ministry of Commerce.

Hundsun To Keep Independence

In a filing with the Shanghai Stock Exchange, Hundsun Technologies said that while Ma's Zhejiang will have a controlling stake in the company, it will continue to maintain independence when it comes to personnel, capital, operators, structure and finances.

Hundsun also said it has no plans to change its main business within the next 12 months and will continue to focus on providing financial IT products and services.

Sources stated that Hundsun is the biggest software provider for companies trading securities and funds in China

'Antiquated' Financial Services Sector

The investment highlights Ma's desire to enter China's financial services sector, which has been considered by experts as antiquated.

Ma continues to invest into the financial system even as major banks in the country have been ordered to cut its ties with Alibaba's online financial products in order to protect the industry.

Other than its Shanghai Stock Exchange filing, Hundsun did not give further details about the investment. Alibaba and Zhejiang also have not commented on the development.

Earlier, China's central government ordered the Industrial Commercial Bank of China, the largest bank in the country, to trim its trade with Alipay, the online payment arm of Alibaba.

Despite this, Alibaba said it still hopes to work together with commercial banks in the country to further improve China's financial industry.