Tencent has confirmed the establishment of a private bank, securing approval from regulatory authorities, with plans to leverage its consortium's strengths to serve individuals and SMEs in China.

Target Information

Tencent Holdings Limited, a leading integrated internet service provider in China, has confirmed that the China Banking Regulatory Commission has approved the application for establishing a private bank. This initiative is being spearheaded by a consortium led by Tencent along with nine other companies, headquartered in Shenzhen. The licensing process for the new bank is expected to take at least six to twelve months before it can officially operate.

As the largest minority shareholder in the consortium, Tencent will hold a 30% equity stake in the newly established bank. This financial institution intends to capitalize on the unique industry advantages offered by its founding members, aiming to provide banking services tailored to individual consumers and small-to-medium enterprises (SMEs).

Industry Overview

The banking industry in China has been experiencing significant growth, driven by the rapid digitalization of financial services and a large unbanked population. The country's banking landscape is increasingly influenced by the rise of fintech