Sep 25, 2019 (China Knowledge) - In an official announcement by China International Capital Corporation (CICC) on Tuesday, the Chinese investment bank is set to launch a fintech joint venture with a subsidiary under Chinese Internet giant Tencent Holdings. Under the agreement, both companies will work together to develop digitalized solutions and support services for wealth management operations.
The new company is set to have a registered capital of RMB 500 mln (USD 70.24 mln). CICC will hold a 51% stake in the joint venture, with the remaining 49% stake held by a wholly-owned indirect subsidiary of Tencent – Tencent Digital (Shenzhen) Limited.
The joint venture was set up following a fintech masterplan released by PBoC in August this year. In recent years, China is aiming to become a key global player in the fintech industry and has taken steps to encourage more innovation within the Chinese fintech industry by 2021.
Bi Mingjian, CEO of CICC said that the joint venture is part of CICC’s “strategic initiatives in wealth management”. Martin Lau, president of Tencent, noted that digitalization within the financial industry remains a lucrative opportunity. The joint venture will tap on both CICC’s strengths in the finance industry and Tencent’s capabilities in the technology field to provide users with innovative fintech solutions.
CICC was listed on the Hong Kong stock exchange in 2015.
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