Internet conglomerate Tencent is planning to raise US$1 billion in new capital to help expand the personal-loan service of WeBank, its affiliated online bank, The Financial Times reported, citing unnamed investors. Said investors expected the fundraising to value the company at US$5 billion, though Tencent declined to comment on the matter. The online-only bank’s debut year has proven rocky, as regulations requiring in-person registration to open a bank account have relegated it and rival MYbank (backed by Alibaba) largely to the role of middlemen. WeBank’s president resigned in September, and the bank confirmed on Tuesday that its vice-president had also resigned.
China Economic Review