Fintech
Tencent-backed online lender WeBank gets the green light to set up a fintech unit in Hong Kong
Tencent Holdingssupported online lender WeBank has received regulatory approval from the mainland to establish a fintech branch in Hong Kongas the ShenzhenThe digital banking unicorn appears to be growing outside its home market.
WeBank has been approved to establish its wholly-owned unit in Hong Kong with a capitalization of $150 million, according to a statement released on Friday by the Shenzhen office of the National Financial Regulatory Administration (NFRA), an agency created last year under the State Council.
The Hong Kong branch also received NFRA approval for WeBank President Li Nanqing to head the unit, according to a separate statement from the regulator published the same day.
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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 branch will manage WeBank’s overseas operations and offer services to the countries and regions covered by the Belt and Road Initiativethe online lender said.
WeBank’s headquarters are in the Nanshan district of the technology hub of Shenzhen, in the southern province of Guangdong. Photo: VCG via Getty Images alt=The headquarters of WeBank in the Nanshan district of the technological hub of Shenzhen, in the southern province of Guangdong. Photo: VCG via Getty Images>
WeBank said it will “strictly comply” with relevant laws and regulations.
The expansion of the digital bank reflects efforts between the southern tech hub of Shenzhen and Hong Kong to promote economic integration, as part of a broader context Greater Bay Area initiative.
A notice issued by the Shenzhen municipal government in July last year encouraged financial institutions Qianhai Economic Zone to set up fintech branches in Hong Kong.
WeBank was one of the organizations behind the Shenzhen-Hong Kong cross-border data verification platform launched in December last year. The goal is to help companies verify cross-border data based on WeBank’s FISCO BCOS blockchain platform.
The lobby of WeBank’s headquarters in Shenzhen. Photo: SCMP alt=The lobby inside the WeBank headquarters in Shenzhen. Photo: SCMP>
Launched in 2014, WeBank was formed by Tencent and several Chinese companies. It has expanded rapidly over the years to become the largest online-only lender in the country.
WeBank is also one of the largest private companies in the world, with a current valuation of 235 billion yuan ($32.4 billion), according to a report published by the Hurun Research Institute in April on unicorns – start-ups valued at more than $1 billion. The report ranked WeBank as the world’s tenth largest unicorn in 2024.
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The online lender reported revenue of 39.3 billion yuan last year, up 11.3% from 2022, and net profit of 10.8 billion yuan, a 21% improvement over to the previous year.
According to its latest annual report, WeBank held assets of 535.5 billion yuan at the end of last year, up 13% year-on-year.
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