Tencent Holdings-backed online lender WeBank has received regulatory approval from the mainland to set up a fintech subsidiary in Hong Kong, as the Shenzhen-based digital banking unicorn looks to grow outside its home market.
WeBank was cleared to establish its wholly-owned Hong Kong unit with a capitalisation of US$150 million, according to a statement published last Friday by the Shenzhen bureau of the National Financial Regulatory Administration (NFRA), an agency created last year under the State Council.
The Hong Kong subsidiary also received NFRA approval for WeBank president Li Nanqing to head the unit, according to a separate statement from the regulator published on the same day.
The new Hong Kong venture was formed to “respond to the country’s strategic policies”, WeBank said in a statement to the Post on Tuesday. The Hong Kong subsidiary will manage WeBank’s overseas business, and offer services to countries and regions covered by the Belt and Road Initiative, the online lender said.
WeBank said it will “strictly adhere to” relevant laws and regulations.
The digital bank’s expansion reflects efforts between southern tech hub Shenzhen and Hong Kong to boost economic integration, as part of the broader Greater Bay Area initiative.
A notice published by the Shenzhen municipal government in July last year encouraged financial institutions in the Qianhai economic zone to establish fintech subsidiaries in Hong Kong.
WeBank was one of the organisations behind the Shenzhen-Hong Kong cross-border data-verification platform launched in December last year. This aims to help businesses verify cross-border data based on WeBank’s FISCO BCOS blockchain platform.
Launched in 2014, WeBank was formed by Tencent and several Chinese companies. It has rapidly expanded over the years to become country’s biggest online-only lender.
WeBank is also one of the world’s biggest private companies, with a current valuation of 235 billion yuan (US$32.4 billion), according to a report published by the Hurun Research Institute in April about unicorns – start-ups valued at more than US$1 billion. The report ranked WeBank as the world’s 10th largest unicorn in 2024.
The online lender last year reported 39.3 billion yuan in revenue, up 11.3 per cent from 2022, and a net profit of 10.8 billion yuan, a 21-per cent improvement from the previous year.
WeBank held 535.5 billion yuan worth of assets at the end of last year, a 13 per cent year-on-year increase, according to its latest annual report.
