http://www.chinadaily.com.cn/business/tech/2017-02/07/content_28120760.htm
Tech giants brand value on the up
By JING SHUIYU | China Daily | Updated: 2017-02-07 07:20
Alibaba's Executive Chairman Jack Ma delivers a speech at an investor conference at the company's headquarters in Hangzhou, East China's Zhejiang province, June 14, 2016. [Photo/Xinhua]
Chinese technology giants' brand value gained momentum and financial service companies are in pole position in the global brand league table, according to a report.
Fifty-five Chinese companies made to the list of the world's 500 most valuable brands this year, with the technology sector soaring in value.
Three tech powerhouses-Alibaba Group Holding Ltd, Huawei Technologies Co Ltd and Tencent Holdings Ltd-were in the top 50 and realized double-digit growth in their brand value, according to a study conducted by United Kingdom-based consulting firm Brand Finance.
Brand Finance CEO David Haigh said: "Chinese tech brands are even more embedded in the daily lives of their users than Western brands are, while the diversity of services offered by brands such as WeChat maximizes the commercial potential of their brands."
Alibaba reached a peak brand value of $34.8 billion, up 94 percent year-on-year, making it the world's 23rd most valuable brand and China's most valuable internet company brand.
Huawei and Tencent also grew impressively in brand value, rising 27.8 percent and 123 percent, respectively.
In terms of financial brands, the study showed that Chinese banks' brand value growth has been rapidly outpacing that of European and North American competitors.
Industrial and Commercial Bank of China, now ranks 10th, ousting US bank Wells Fargo as the most valuable bank in the world.
The consulting firm attributed the industry's growth to "vast population, organic expansion, foreign M& A activity and positive relationships with Chinese consumers".
Likewise, Ping An Insurance held sway as the world's most valuable insurance brand, increasing 11 percent in value to $6.2 billion.
This year Google overtook Apple as the most valuable brand across all industries, with a value of $109 billion.
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JD reported to plan for banking license
By Fan Feifei | China Daily | Updated: 2017-02-04 09:30
View of the stand of JD Finance of Chinese online retailer JD.com during an exhibition in Shanghai, Nov 4, 2016. [Photo/IC]
JD.com Inc, China's second-biggest e-commerce player, said on Friday it is carrying out work related to financial service licenses, after media reports said the internet giant is willing to cooperate with a domestic traditional bank to open a direct bank, engaging in direct banking business as a separate legal entity.
A direct bank is a bank without any branch network that offers its services remotely via online banking and telephone banking and may also provide access via ATMs (often through interbank network alliances), mail and mobile.
JD on Friday declined to comment on the reports and would not disclose details.
It is not the first time that internet companies have engaged in direct online banking in China. In January, internet search provider Baidu Inc and China CITIC Bank announced they had received approval from the China Banking Regulatory Commission in relation to the establishment of Baixin Bank, an online direct bank both companies had invested in.
CITIC will hold a 70 percent stake in Baixin and Baidu will have a 30 percent share.
In 2015, Alibaba Group Holding Ltd's financial arm, Ant Financial Services Group, launched an online private bank called MYbank, which focuses on providing financial services to small and micro businesses and young entrepreneurs.
Internet giant Tencent Holdings Ltd also launched an online bank called WeBank.
Dong Ximiao, executive president of the Hengfeng Bank Institute, said most of the domestic direct banks exist as an internal department of a bank, some even as a secondary unit affiliated to the e-banking department or personal finance department.
However, a direct bank should be a separate legal entity according to international practice, Dong said.
Basing on the majority of investment accounts, China is said to be the global leader in financial technology and Internet banking investments.
Financial technology (or
fintech) attracted around half of all the total Chinese venture capital last year and major Internet banks have performed well financially relative to other startups.
Other Chinese companies are following this trend.
Xiaomi, one of China’s biggest online smartphone vendors, bought a 30 percent stake in Sichuan XW Bank last December. Sichuan XW Bank is a major Internet bank in China that leverages data to target consumers and small businesses.
Meituan.com, a website that specializes in offering group-buy options to consumers, also formed Julin Yilian Bank, and received its banking licenses last Dec. 2016.
According to a joint report by the DBS bank and consultancy firm EY, fintech investments surged to about $8.8 billion in just 12 months.
Ant Financial is said to have raised $4.5 billion in early 2016. This is the largest single private placement in financial technology history, which boosted the company's valuation to $60 billion.
The traditional banking industry in China is the biggest growth enabler of fintech, as major banks generally focus on serving state-owned enterprises, large private companies and local and regional governments. The under-served sectors have been a major benefactor of Internet banks in recent years.