The Shenzhen office of China's National Financial Regulatory Administration (NFRA) approved WeBank on 21 June 2024 to establish a wholly owned technology subsidiary in Hong Kong. The NFRA, which replaced the China Banking and Insurance Regulatory Commission in 2023, oversees the country's banking and insurance sectors.
Under the approval, WeBank will invest US$150 million in the new company, WeBank Technology Limited, and hold 100% of its shares. The regulator also approved WeBank president Li Nanqing as chairman of the subsidiary and Chen Jing as its general manager.
OVERSEAS PLATFORM
WeBank said the Hong Kong company would serve as a management platform for its overseas business, allowing it to take part in international competition using technology it controls independently. The unit will also provide technology services to countries and regions along the Belt and Road.
As a condition of the approval, the regulator required WeBank to manage the new subsidiary on a consolidated basis in line with supervisory requirements for overseas institutions.
WeBank described the move as a response to national strategy and to opportunities arising from digitalisation around the world. The Belt and Road Initiative, launched by China in 2013, is a programme of infrastructure, trade and investment links with countries across Asia, Africa, Europe and other regions.
Based in Shenzhen and backed by Tencent, WeBank began operating in 2014 as one of China's first privately owned banks and provides consumer and small-business lending through online channels.