China Unicom and Hong Kong Wing Lung Bank to establish joint consumer Finance Limited

Abstract: Today, Tencent Technology from China Unicom (micro-Bo) learned that the China Banking Regulatory Commission has recently agreed to China Unicom and Merchants Bank's wholly-owned subsidiary of Hong Kong Wing Lung Bank to prepare the recruitment of the joint Consumer Finance Co., Ltd., since the end of September 2013, the CBRC announced the expansion

Today, Tencent Technology from China Unicom (micro-Bo) learned that China's Banking regulatory Commission has recently agreed to China Unicom and Merchants Bank's wholly-owned subsidiary of Hong Kong Wing Lung Bank to prepare the "Joint consumer Finance Limited", This is the first consumer finance company to be approved by the CBRC after announcing the expansion of the pilot cities of the consumer finance company in September 2013, and the consumer finance company which has applied for preparation under the framework of the mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA). China Unicom and Merchants Bank said that they would do their best to prepare for the preparatory work in strict accordance with regulatory requirements.

It is reported that the preparation of the recruitment of the joint Consumer Finance Co., Ltd. will be established in Shenzhen before the sea. The company registered capital of 2 billion yuan, by the investment bank Wing Lung Bank and China Unicom in the mainland's operating company China United Network Communications Co., Ltd. each contributed 1 billion yuan.

September 2013, China Banking Regulatory Commission announced the expansion of consumer finance company Pilot City Range, add Shenyang, Nanjing, Hangzhou, Hefei, Quanzhou, Wuhan, Guangzhou, Chongqing, Xi ' an, Qingdao and other 10 cities to participate in the pilot work.

In addition, according to CEPA arrangements, qualified Hong Kong and Macao financial institutions can be in Guangdong (including Shenzhen) pilot set up consumer finance companies. Together with the first pilot 4 cities in 2010, the current consumer finance company pilot cities have reached 16.

According to the cooperation agreement, the two sides will provide financial services to users by integrating the high quality resources of both sides and excavating the large data applications in depth. This is also a strong attempt by China Unicom to explore and practice mixed ownership, realize "mechanism marketization and Operation Specialization", and it is also a positive exploration of using capital means to cooperate closely with enterprises with high quality resources and expand the layout of industrial chain, which will bring positive effect in strategic and business synergy.

With the business development, the new company will further improve the corporate governance structure, and timely introduction of new investors to explore the mixed ownership of the operation and development model. China Unicom and Merchants Bank have obvious complementary advantages in developing Internet finance. The advantage of China Unicom is that with a strong network support and operational capabilities, the Internet technology can be applied to the field of consumer finance, and then create a consumer financial operation of the Internet financial model, with a huge customer resources and rich online channel resources under the line, to the new company product marketing and customer service to provide strong support. The advantage of China Merchants Bank is that it has the operation experience in the market-oriented financial environment, strong financial service innovation ability and rich customer resources, and has advanced and rich experience in developing the consumer finance business in developed areas.

On the basis of the above advantages, the two sides will further develop the advantages of China Merchants Bank in the retail finance, such as product research and development, channel resources, risk management, and take advantage of the financial business Operation ability formed by the merchants Bank for many years, and rely on the huge customer base and data resources of both sides to carry out strategic business cooperation Actively explore and innovate the Internet operation mode, to provide users with consumer financial services.

In order to facilitate the smooth conduct of cooperation, both sides to the fastest speed of the completion of their respective departments of approval. June 27, 2014, the State Council SASAC approved the joint venture between China Unicom and China Merchants Bank; July 17, the Hong Kong Monetary Authority formally issued a written opinion to wing Lung bank, agreeing with the principle that wing Lung bank set up a consumer finance company in the mainland.

Some analysts believe that in the current internet-based micro-credit, financial management business rapid development, the third party payment market scale is expanding the new situation, the two sides have a huge space of cooperation and broad prospects.

At present, the two sides have formed a joint preparatory, the recruitment of Consumer Finance Co., Ltd. 's preparations are in the process of orderly advance.