China International Capital (CICC) is set to form a technological joint venture (JV) with a Tencent unit to develop new technology platforms for wealth management industry.
CICC will own 51% stake in the entity, while the remaining interest will be with Tencent Digital (Shenzhen), a subsidiary of Tencent Holdings.
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By GlobalDataThe finetch venture will have a registered capital of RMB500m ($70.1m).
The venture will deliver technological platform development and digitalised operational support services for CICC’s wealth management, retail brokerage and other businesses.
CICC and Tencent also agreed to share respective expertise to support the venture’s development.
Tencent will offer its digital know-how, technical and operational professionals and support of its customer base.
On the other hand, CICC will offer its experience in investment advisory, financial products, asset allocation and risk control, as well as technological capabilities to the JV.
CICC CEO Bi Mingjian said: “The technological joint venture is part of CICC’s strategic initiatives in wealth management.
“We are pleased to collaborate with Tencent, a tech enterprise with outstanding capabilities and substantial experience in digitalisation, to explore the huge growth potential of the digital future.”
Tencent Holdings president Martin Lau said: “Digitalisation of financial services provides a secular opportunity for the industry.
“Combining the strengths of CICC and Tencent, we look forward to offering more customised and differentiated FinTech services to users.”