A new private bank backed by eight Chinese companies including gadget maker Xiaomi has received regulatory approval in China.
New Hope Group, Xiaomi, and Chengdu HongQi Chain Store will own a stake of 30%, 29.5% and 15%, respectively in the new entity.
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The new bank, provisionally named Sichuan Hope Bank, will offer financial services to young people and small companies. It will have a registered capital of about $456m.
The move follows a host of similar deals reached by major technology firms looking to diversify into mainland financing. In June 2015, e-commerce firm Alibaba Group launched MYbank, while in January 2015 internet giant Tencent launched the country’s first private online-only bank.
In April 2015, Xiaomi collaborated with China UnionPay to launch its own mobile payment service.
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