Chinese tech heavyweight Alibaba Group Holding Ltd announced on Wednesday that it will set up an asset management company to manage the operation of its non-core assets and boost its return on capital.

Dai Shan, previously the CEO of Alibaba's e-commerce business unit Taobao and Tmall Group, will assist in establishing the new company.

Wu Yongming, Alibaba Group's CEO and chairman of Taobao and Tmall Group, is taking over Dai's role as CEO of Alibaba's e-commerce arm. Wu has also been CEO of Alibaba's Cloud Intelligence Group.

Alibaba Group's Chairman Joe Tsai said in an internal message to staff that Wu's leadership of both Alibaba Cloud and Taobao and Tmall Group (TTG) will ensure total focus on, and significant and sustained investment in, the company’s two core businesses of cloud computing and e-commerce, as well as enabling TTG to transform through technology innovation.

Tsai said Dai's new role in the asset management company would allow her to "play to her strengths" and "further contribute to the company".

fanfeifei@chinadaily.com.cn