What’s new: WeBank Co. Ltd. has been cleared to set up a tech subsidiary in Hong Kong, as the Tencent Holdings Ltd.-backed online lender looks to expand into new markets.
The Shenzhen office of the National Financial Regulatory Administration released an approval on Friday for WeBank’s application, allowing it to set up the wholly owned company with $150 million.
The subsidiary will serve as an overseas business management platform to provide tech services for Belt and Road Initiative countries and regions, WeBank told Caixin.
Beijing first announced the initiative in 2013, calling on broad participation to develop infrastructure along the land-based ancient Silk Road and a maritime route connecting China and Europe. The program now involves more than 100 countries and regions.
The background: Set up in 2014, WeBank is one of China’s largest online lenders alongside Zhejiang E-Commerce Bank Co. Ltd., or MYbank, backed by fintech giant Ant Group Co. Ltd.
As of the end of last year, WeBank had 535.6 billion yuan ($75.6 billion) in total assets, a 13% year-on-year increase, its annual report showed. Revenue grew 11% last year to 38.4 billion yuan and net profit jumped 21% to 10.8 billion yuan.
Retail loans accounted for almost 55% of WeBank’s total lending as of the end of 2023, down from close to 56% a year earlier.
The lender’s nonperforming loan ratio dipped to 1.46% from 1.47% at the end of 2022.
Contact reporter Zhang Yukun (yukunzhang@caixin.com) and editor Jonathan Breen (jonathanbreen@caixin.com)
