Commission Give Appliance Retailer Approval in Creating Payment Services
China Securities and Regulatory Commission gave major domestic home appliance retailer Suning Commerce Groups the approval to create its subsidiary that will provide payment and settlement service for its online mutual fund sales. The Shenzhen listed company still awaits the approval to operate a mutual fund e-commerce platform,
Suning along with other appliance retailers to rethink their business models and expand in the e-commerce industry to compete with the growing number of shoppers doing their purchasing online. Suning nearest competitor Gome Electrical Appliances Holdings which is backed by Bain Capital a U.S. asset capital manager is set to create a private bank after getting approval from the government to promote its establishment of financial institutions that will support the cash strapped small firms.
China is also set to issue licenses to three private firms to run banks in Beijing Wenzhou and Shenzhen.