(Yicai Global) Nov. 27 -- Southwestern China's Chongqing Rural Commercial Bank has obtained its first go-ahead in the field of consumer finance to join hands with smartphone maker Xiaomi to offer consumer loans.
Regulatory authorities have approved the plan of Chongqing Rural Commercial Bank and Xiaomi to establish a consumer finance firm with a total investment of CNY450 million (USD64.3 million), the China Banking Regulatory Commission said in a statement on its website yesterday. The lender has a 30 percent stake in the venture.
Xiaomi has been making inroads into consumer finance for many years. In September, it teamed with China Construction Bank to offer electronic bank accounts to phone users. Last year, it launched its Mi Credit service in India, a market that it rules, to make it easy for phone owners to apply for personal loans.
Xiaomi has been preparing for its Chongqing move for more than a year. In May 2018, Xiaomi Technology and the administration of Chongqing's Jiangbei district penned a cooperation framework agreement to set up the consumer finance firm with its center in the area.
In 2015, Xiaomi's Hong Kong arm formed a microlending firm in the same city with a registered capital of USD450 million.
The lender's [HKG: 3618] share price rose by 0.3 percent to HKD4 (US 50 cents) this morning.
Xiaomi's [HKG: 1810] shares climbed 0.8 percent to HKD.8.70.
Editor: Emmi Laine