Tencent Holdings-backed online lender WeBank has received regulatory approval from mainland China to establish a wholly-owned fintech subsidiary in Hong Kong with a $150 million capitalization, according to a statement Friday by the Shenzhen Bureau of the National Financial Regulatory Administration (NFRA), reports the South China Morning Post.
The new Hong Kong venture was formed to “respond to the country’s strategic policies,” WeBank said in a statement to the Post on Tuesday. The Hong Kong subsidiary will manage WeBank’s overseas business and offer services to countries and regions covered by the Belt and Road Initiative, the online lender said.
The subsidiary also received NFRA approval for WeBank president Li Nanqing to head the unit, according to a separate statement from the regulator published on the same day.