Alibaba Group Holding Ltd said on Wednesday that it was setting up a new company to tap into China's multi-trillion-yuan sports market.

The newly founded company with a name that can be directly translated into Ali Sports is expected to use digital technology to transform the entire industrial chain of China's traditional sports industry, said a statement from Alibaba.

According to the statement, Alibaba Group is the controlling shareholder of Ali Sports, and other two investors are China's online media company Sina Corp and private equity firm Yunfeng Capital, which is co-founded by Alibaba chairman Jack Ma.