Xiaomi And Meituan Enter Chinese Internet Bank Market

Jan. 09, 2017 7:49 AM ETXiaomi Corporation (XIACF), MEITBABA, TCEHY
Ivan Tang profile picture
Ivan Tang


  • Xiaomi gets a 30% stake in the third internet bank in China, after those led by Alibaba and Tencent. It is also the first privately owned bank in western China.
  • Meituan, China’s largest group buying website also gets a 28.5% stake in China’s fourth internet bank, also the first one in northeastern China.
  • With the new bank license, Xiaomi will start open-platforms providing full financial services for its tens of millions of clients and suppliers.
  • Meituan’s new bank targets small rural and agricultural clients in northeastern China. The bank license will boost its valuation and borrowing capacity.

Xiaomi (XI), China's largest online seller of smartphones, and Meituan (MEIT), the largest Chinese group buying website, are the two latest Internet giants launching privately-owned banks, following their big brothers Alibaba (BABA) and Tencent (OTCPK:TCEHY).

On December 27, 2016, Sichuan Hope Bank said it had held its first shareholder general meeting and resolved to change its name to Sichuan Xinwang Bank (literally means New Network Bank in Sichuan Province). The meeting also announced the bank's inauguration as the first privately-owned bank in western China.

Xiaomi has a 29.5% stake in Xinwang Bank, the third privately-owned Internet bank in China and the first such bank in western China (source).

According to records of China Banking Regulatory Commission (CBRC) quoted by Sina Technology, Xinwang Bank has three founding shareholders: New Hope Group, Xiaomi and Hongqi Chain, with stakes of 30%, 29.5% and 15% respectively. New Hope is an agricultural conglomerate while Hongqi is a chain store group, both based in Sichuan.

Xioami Has 29.5% Stake At China's Third Internet Bank

With Xiaomi a founding shareholder, Xinwang Bank will run mainly as an Internet bank, making itself China's third privately-owned Internet bank, following Ant Finance (an affiliate of Alibaba)-led My Bank and Tencent-led We Bank.

Xinwang Bank positions itself as the first privately-owned Internet bank in western China. Calling itself a "data-driven bank", the bank favors an integration of finance and technology. According to Sina Technology, it will use Internet technology to innovate services, customer experience and risks control.

Xinwang Bank targets at small consumer and enterprise clients long neglected by traditional state-owned banks. It hopes to provide small clients safe, convenient and efficient financial services.

Meituan Owns 28.5% Stake of The First Internet Bank In Northeastern China

CBRC also announced that eight privately-owned bank licenses were awarded in November and December. Among them, Jilin

This article was written by

Ivan Tang profile picture
I am an experienced journalist focusing on multi-disciplinary analysis of China's economy and business. I graduated from the Chinese University of Hong Kong and got my MBA from l'Ecole Superieure de Commerce de Paris.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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