WeBank, a Chinese neobank backed by Tencent Holdings, has received regulatory approval from mainland China to establish a fintech subsidiary in Hong Kong.
The approval allows WeBank to set up the wholly-owned unit in Hong Kong with a capitalisation of US$150 million, according to an announcement by the Shenzhen bureau of the National Financial Regulatory Administration (NFRA). Additionally, NFRA approved WeBank president Li Nanqing to lead the new unit.
The Hong Kong subsidiary will manage the bank’s international business and offer services to regions involved in the Belt and Road Initiative, aligning with national policies, WeBank stated to the South China Morning Post.
This expansion is part of broader efforts to enhance economic integration between Shenzhen and Hong Kong under the Greater Bay Area initiative.
Last December, WeBank contributed to the launch of the Shenzhen-Hong Kong cross-border data-verification platform, utilising its FISCO BCOS blockchain platform for cross-border data verification.
Founded in 2014 by Tencent and other Chinese firms, WeBank has become China’s largest online-only lender and is valued at 235 billion yuan (US$32.4 billion).
In 2023, WeBank reported revenue of 39.3 billion yuan, up 11.3 percent from the previous year, with a net profit of 10.8 billion yuan, a 21 percent increase.
Another Tencent-backed digital bank in Hong Kong, Fusion Bank, is a licensed virtual bank and a joint venture between Tencent Holdings Limited, Industrial and Commercial Bank of China (Asia) Limited, Hong Kong Exchanges and Clearing Limited, Hillhouse Capital, and renowned Hong Kong entrepreneur Adrian Cheng.