WeBank received the green light to set up its fully-owned Hong Kong subsidiary with a capital of USD 150 million, as per a statement released by the Shenzhen bureau of the National Financial Regulatory Administration (NFRA), an agency established in 2023 under the Chinese State Council.
The new Hong Kong venture was formed to respond to the country's strategic policies. The Hong Kong subsidiary will manage WeBank's overseas business and offer services to countries and regions covered by the Belt and Road Initiative, while adhering 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 2024. 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 (USD 32.4 billion), according to a report published by the Hurun Research Institute in April 2024 about unicorns - start-ups valued at more than USD 1 billion. The report ranked WeBank as the world's 10th largest unicorn in 2024.
The online lender reported 39.3 billion yuan in revenue in 2023, up 11.3% from 2022, and a net profit of 10.8 billion yuan, a 21% improvement. WeBank held USD 73.7 billion worth of assets at the end of 2023, a 13% year-on-year increase, according to its annual report.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now