Tencent enters China’s traditional finance sector with CICC stake
Hong Kong — Tencent, China’s largest social media firm, is entering the traditional finance industry by investing in CICC International Capital, a move that may help the investment bank’s expansion in wealth management. Shares of CICC jumped by a record after it said Tencent was paying HK$2.9bn (US$372m) for roughly 5% of China’s oldest investment bank. The companies will team up on marketing and data analysis, according to an exchange filing. CICC, once dubbed the Goldman Sachs of China after it brought some of the country’s largest state-run firms to market, has been reducing its dependence on volatile investment banking fees and expanding its business catering to rich individuals. It completed a $2.5bn purchase of China Investment Securities this year, plunging into the retail investor market. "Investors are buying into the fintech concept," said Chi Man Wong, a Hong Kong-based analyst at China Galaxy Securities. CICC gained wealthy clients through the acquisition of China Invest...
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