(22 September 2017 – Asia) Chinese internet giant Tencent has announced a US$370 million investment and “strategic co-operation” with the country’s oldest brokerage China International Capital Corp (CICC), signalling its move into the wealth management sector.
The purchase of a 5 percent stake by Tencent follows that of tech rival Alibaba’s push through its Ant Financial division.
Earlier this year, Ant Financial opened up its wealth management app to other financial institutions, aiming to be a “one-stop shop” for the country’s growing wealth population, including the 1.5 million people who now have assets above the US$1.5 million mark.
In an announcement, CICC said the co-operation with Tencent would be “a significant impetus for the development of strategic businesses of the company, including but not limited to wealth management and asset management”.
Tencent is getting a five percent stake in CICC through newly-created shares.