Xiaomi to become second-biggest stakeholder in new Sichuan bank geared towards young, internet savvy users
The announcement follows Xiaomi tie-up with China UnionPay in April
Chinese smartphone maker Xiaomi will become a minority partner in a bank in central western China geared towards younger, internet-savvy users and small companies, reflecting its second foray into mainland finance and the latest in a number of deals by major tech companies seeking to diversify into banking.
Xiaomi will be the second-largest investor with a 29.5 per cent stake, while Chinese conglomerate New Hope Group will own a 30 per cent stake and Chengdu Hongqi Chain will own a 15 per cent, according to the filing.
The new bank has a registered capital of 3 billion yuan (HK$3.5 billion).
“The Sichuan Hope Bank will become the first mobile internet bank in central western China,” said a spokesman for the bank in a statement. “It will focus on the needs of the younger demographic and small enterprises.”
The move comes as Xiaomi faces slower smartphone sales growth in China as the market reaches saturation. Once the fifth largest global smartphone supplier in the world, Xiaomi has been overtaken by domestic rivals OPPO and vivo in the first quarter this year, according to research firm IDC.
The deal is the latest in a number of recent agreements by major tech companies seeking to diversify into mainland financing.
