Tencent Holdings invests $372mn in Chinese investment bank, CICC

By BizClik Admin

Tencent Holdings has invested $372mn for 5% shares in Chinese investment bank, China International Capital Corporation.

Tencent, which operates WeChat and WePay, is China’s largest social media firm.

Tencent purchased 207.5mn shares for US$1.77 apiece.

Shares in CICC went up by 19% to a record high of US$2.37 following the announcement.  

 

See also: 

WePay app launched in Malaysia 

Indian startup GoJek launches epayment app

Latest issue of Business Review Asia magazine 

 

CICC is the oldest investment bank in China which hopes to expand into wealth management, helped by Tencent’s investment.

The corporation has brought some of the country’s largest state-run firms to market, and recently it has been reducing its dependence on investment banking fees in favour of expanding its business catering for wealthy individuals.

The company recently purchased China Investment Securities Co for $2.5bn, its first step into the retail investor market.

CICC has states it hopes this cooperation with Tencent will “enable the company to enlarge its customer base and provide more personalised and diversified wealth management products and services for customers.” The cooperation is thought to be “a significant impetus for the development of strategic business of the company, including but not limited to wealth management and asset management.”

It is also hoped the relationship will be beneficial for Tencent’s e-payment app, WePay. It is currently competing with fellow giant, Alibaba, which is pushing into wealth management with Ant Financial, an app which was launched in June.

Share

Featured Articles

Nirvik Singh, COO Grey Group on adding colour to campaigns

Nirvik Singh, Global COO and President International of Grey Group, cultivating culture and utilising AI to enhance rather than replace human creativity

How Longi became the world’s leading solar tech manufacturer

On a mission to accelerate the adoption of sustainable energy solutions, US$30 billion Chinese tech firm Longi is not just selling solar – but using it

How Samsung’s US$5billion sustainability plan is working out

Armed with an ambitious billion-dollar strategy, Samsung is on track to achieve net zero carbon emissions company-wide by 2050 – but challenges persist

UOB: making strides in sustainability across Southeast Asia

Sustainability

Huawei smartwatch goes for gold with Ultimate Edition

Lifestyle

How IKEA India plans to double business, triple headcount

Corporate Finance