Chinese investment bank China International Capital Corporation (CICC) has inked an agreement with a Tencent Holdings subsidiary to launch a joint venture to deliver technology solutions and digitalized operational support services for wealth management, CICC announced on Tuesday.
The joint venture will have a registered capital of 500 million yuan ($70.24 million). CICC will hold a 51 per cent stake in the company, while Tencent Digital (Shenzhen) Limited, an indirect wholly-owned affiliate of Tencent, will hold the remaining 49 per cent.
The new company will provide technological platform development and digitalized operational support services to facilitate CICC’s wealth management, retail brokerage and other businesses, said the investment bank. CICC went public on the main board of the Hong Kong stock exchange in 2015.
The venture represents a joint exploration of CICC and Tencent in response to the call and requirement of the state and regulatory authorities for fintech development.
The company was launched after the People’s Bank of China (PBOC), the de facto central bank in the country, revealed a fintech development plan in late August 2019, seeking to promote the country’s fintech industry between 2019 and 2021 and to take a lead worldwide.
“The technological joint venture is part of CICC’s strategic initiatives in wealth management,” said Bi Mingjian, CEO of CICC.
“Digitalization of financial services provides a secular opportunity for the industry. Combining the strengths of CICC and Tencent, we look forward to offering more customized and differentiated FinTech services to users,” said Martin Lau, president of Tencent.