Xiaomi marches into banking industry

Visitors look at smart TV sets of Xiaomi on display during the Appliance & Electronics World Expo 2016 (AWE 2016) in Shanghai, China, 10 March 2016. [Photo/IC]

Chinese smartphone maker Xiaomi Corp is stepping into the banking industry, marked by its wholly-owned Sichuan subsidiary's application to start a bank receiving approval from the China Banking Regulatory Commission (CBRC), the company said today.

The subsidiary, Sichuan Yinmi Technology Co, along with New Hope Group, Chengdu HongQi Chain Store Co and other five Sichuan companies, will open Sichuan's first private bank - Sichuan Hope Bank, with 3 billion yuan in registered capital. The three main founding members subscribed 29.5 percent, 30 percent and 15 percent of the shares respectively, according to Securities Times.

A New Hope Group official said that the bank aims to provide inclusive financial services available any time and everywhere, taking full advantage of the founders' industry resources and internet technology.

The bank also aims to provide consumers, small and medium enterprises and farmers various financial products.

The country has initiated the second round of private banks' founding. According to previous media reports, the set-up of Chongqing Fumin Bank, founded by Hanhua Financial Holdings and classified as private bank, was approved by the CBRC. The set-up of Zhongguancun Bank is also underway, with private companies intending to organize it.