9F, fintech company with 63 million mainland Chinese users, eyes Hong Kong virtual banking licence
Company among applicants for first batch of licences to be issued by Hong Kong Monetary Authority
Mainland Chinese financial technology company 9F Group has teamed up with local and international firms to apply for a virtual banking licence in Hong Kong.
The company, set up in Beijing in 2006 by founder and chief executive Sun Lei, who was among China’s first internet finance entrepreneurs, has more than 63 million users – of these, more than 8 million in the Greater Bay Area.
“We would like to use Hong Kong as a platform for 9F Group to expand internationally. This is why we have taken over Primasia Securities Asia, a Hong Kong securities firm, and Yue Tung Wealth Management, an insurance broker, in the past two years. And now we want to get a virtual banking licence,” said Samuel Lin Yanjun, chief executive of 9F’s international business and CFO of the group.
Hong Kong draws 29 applications for virtual bank licences
Lin declined to name 9F’s international partner but did say the fintech company was operating a virtual bank overseas. Other partners include Hong Kong-listed fintech company VST ECS, which reported HK$54 billion (US$6.88 billion) in sales last year. Lin said 9F had a controlling stake in the joint venture.
“The stock market may still be volatile in the coming months because of the US-China trade war, but we believe this is a good time to start a virtual bank. We plan to invest about HK$1 billion in this joint venture. We have a long-term commitment to Hong Kong, which is a financial hub for mainland China and Asia,” he said.
Along with its partners, 9F is among 29 applicants for the first batch of virtual bank licences to be issued by the Hong Kong Monetary Authority. The authority has not said how many licences it will issue.
Lin said virtual banking, because of the lower running costs involved, would let 9F offer small loans and still be profitable. The company has hired veteran Hong Kong banker Patrick Ip Koon-tung to be the managing director of 9F International Businesses, and to manage the virtual banking business.