Xiaomi-backed online bank to
launch services soon - bank investor
Send a link to a friend
[December 28, 2016]
BEIJING
(Reuters) - A Chinese online bank backed by smartphones and home
appliances maker Xiaomi Inc [XTC.UL] is set to launch services soon,
after being officially established and rebranded recently, according to
one of the venture's investors.
New Hope Group Co Ltd said in a statement on Tuesday shareholders and
regulators had approved the name Sichuan XW Bank for the lender.
"This is an important step in the process, marking (the bank's) the
official establishment," said the statement, citing an unnamed person in
charge at the new bank.
"(The bank) will be officially open to users in the near future."
It is the latest in a string of new online banks backed by Chinese tech
companies, who are hoping to tap the country's underserved market of
small enterprises and consumers.
WeBank, backed by Tencent Holdings Ltd, became China's first operational
online-only bank in 2015, followed by MYBank, a venture controlled by
Alibaba Group Holding Ltd affiliate Ant Financial Services Group.
The new venture comes as Xiaomi has seen its smartphone sales shrink,
raising doubts about the worth of the company, which was valued at $46
billion in its last fund-raising in 2014. It is now pinning profit
growth hopes on sales from smart home devices as well as revenue from
its software eco-system.
On Tuesday, Xiaomi CEO and Chairman Lei Jun revealed the rebranding with
a picture of the new bank's logo posted on Twitter-like social media
site Weibo.
![](http://archives.lincolndailynews.com/2016/Dec/28/images/ads/current/johnsonlumber_lda_CHRISTMAS_2016.png)
[to top of second column] |
![](http://archives.lincolndailynews.com/2016/Dec/28/images/ads/current/ME_realty_lda_LUAL_2016.png)
A Xiaomi spokeswoman confirmed the company's official English name but
declined to comment on a potential launch date.
China's traditional banks are overwhelmingly state-owned and largely
serve state enterprises, making financing difficult for small private
enterprises.
![](http://archives.lincolndailynews.com/2016/Dec/28/images/ads/current/johnsonrealestate_lda_CHRISTMAS_2016.png)
The government has sought to remedy the issue by releasing batches of
private banking licenses, beginning in 2014. The latest batch, released
on Wednesday by the China Banking Regulatory Commission, includes new
banks in China's northeast industrial rust belt.
Sichuan XW Bank, originally approved by banking regulators in June under
the provisional name Sichuan Hope Bank, is a joint venture of several
investors including Xiaomi subsidiary Sichuan Yinmi Technology Co Ltd,
New Hope Group and Chengdu Hongqi Chain Co Ltd.
Xiaomi's subsidiary holds just under 30 percent of the venture, while
Chengdu Hongqi Chain and New Hope Group own 15 and 30 percent,
respectively. The bank has a registered capital of 3 billion yuan
($431.38 million).
(Reporting by Cate Cadell; Editing by Muralikumar Anantharaman)
[© 2016 Thomson Reuters. All rights
reserved.] Copyright 2016 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |