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Bank of Communications unit to set up 600M yuan fintech subsidiary

BOCOM International Holdings Co. Ltd., a unit of Bank of Communications Co. Ltd., plans to invest 600 million yuan to set up a financial technology unit aimed at boosting the banking group's digital capabilities.

The new unit, BOCOM Financial Technology Co. Ltd., will be held through BOCOM International (Shanghai) Equity Investment Management Co. Ltd., a wholly owned subsidiary of BOCOM International, according to a Jan. 16 release.

BOCOM Financial Technology's main business will include network, software, mechanical and electrical technology, as well as technical consulting and outsourcing of financial information and business processes.

The establishment of the unit, which the banking group said is in line with its development strategy, remains subject to regulatory approval.

As of Jan. 16, US$1 was equivalent to 6.88 Chinese yuan.