Baixin Bank

Backgroundofestablishment

InJuly2015,thestateissuedthe"GuidingOpinionsonActivelyPromotingthe"Internet+"Action".Atthesametime,tenministriesandcommissionsjointlyissuedthe"GuidelinesonPromotingtheHealthyDevelopmentofInternetFinance"TheOpinionsalsofurtherclarifiedthatwithbanksasthemainbody,andInternetcompanieswilljointlydevelopInternetfinance;intherecent"13thFive-YearPlan"issuedbythestate,Internetfinancehasalsobeenincludedinthenationalfive-yearplanforthefirsttime,andInternetfinancehasbecomeanationalstrategy.ChinaCITICBankandBaiduCorporationrespondedpositivelyandjointlyinitiatedtheestablishmentofadirectbanktodevelopinclusivefinanceandservetherealeconomy.

Asthefirststate-controlledInternetbank,BaixinBankcandevelopitsbusinessacrossthecountry.Investeffortstoexplorefinancialtechnologyandopenbankinginnovation,empowerinclusivefinancialservices,andcreateaninnovativemodelofInternetopenbanking.

DevelopmentHistory

OnNovember17,2015,ChinaCITICBankissuedanannouncementstatingthatitreviewedandapprovedthe“ProposalontheEstablishmentofDirectBankingCompanies”inordertofurtherpromotetheBank’sInthefieldofInternetfinance,thedevelopmentofinclusivefinanceandthesupportoftherealeconomy,theboardofdirectorsagreedthatthebankplanstocooperatewithBaidutojointlyestablishadirectbank.Thedirectbankwillbenamed"BaixinBankCo.,Ltd."witharegisteredcapitalof2billionyuan.ControlledbyChinaCITICBank.

OnNovember18,2015,BaiduandCITICGroupjointlyannouncedthestrategiccooperationbetweenthetwopartiesattheDiaoyutaiStateGuesthouse.BaiduandCITICBank,asubsidiaryofCITICGroup,initiatedtheestablishmentofBaixinBank.TheestablishmentofBaixinBankisoficonicsignificanceinthedevelopmentofChina'sbankingindustry,openingupanewfinancialmodelof"Internet+Finance".

OnJanuary5,2017,ChinaCITICBankannouncedthattheChinaBankingRegulatoryCommissionagreedtoestablishCITICBaixinBankCo.,Ltd.inBeijing.Thebankcategoryisalimited-licensecommercialbank,whichconductsdirectbankingbusinessintheformofanindependentlegalperson.Thisisthefirstdomesticdirectsalesbanktoadoptanindependentlegalpersonoperationmodel.ChinaCITICBankandBaidu,asthepromoters,subscribedfor1.4billionand600millionordinarysharesofBaixinBank,respectively,withtheshareholdingratiosbeing70%and30%respectively.

OntheeveningofAugust21,2017,ChinaCITICBank(601998.SH,0998.HK)issuedanannouncementstatingthatonAugust21,2017,thepreparationteamofCITICBaixinBankCo.,Ltd.receivedthe"ChinaTheChinaBankingRegulatoryCommission’sReplyontheOpeningofCITICBaixinBankCo.,Ltd.agreedtotheopeningofCITICBaixinBankCo.,Ltd.TheregisteredcapitalofBaixinBankisRMB2billion,andthelegalrepresentativeisLiQingping.

OnNovember18,2017,BaixinBankofficiallyopened.ThisisalsoChina'sfirstindependentlegalpersondirectsalesbank,whichhaspilotsignificance.LiRudong,formerheadoftheelectronicbankingdepartmentofChinaCITICBank,willserveasthepresident.Thethreedeputypresidentsare:WangJunhui,formerdeputygeneralmanageroftheelectronicbankingdepartmentofChinaCITICBank,WangXiaowei,formerseniordirectorofBaiduFinance,andformerdeputygeneralmanageroftheelectronicbankingdepartmentofChinaConstructionBankKouGuan.MaHaiqing,formeremployeesupervisorrepresentativeofChinaCITICBank,servedasassistanttothepresident,secretaryoftheboardofdirectors,andchieffinancialofficer.

InApril2018,BaixinBankdemonstratedthe"InternetFinancialSolutionsforGovernmentPublicResourcesTradingCenter"duringthefirstDigitalChinaConstructionSummit,providingsolutionsforpublicresourcestradingcentersandtheindustrialInternet,andSignedacooperationagreementwiththeDalianPublicAdministrationServiceCenter:BaixinBankwillembedfinancialservicesintothelocalgovernmentpublicresourcetradingcenter,andprovidefinancialservicessuchasonlinefinancingtosmall,mediumandmicrobiddingcompaniesandsuppliercompanies.

OnSeptember20,2018,BaixinBankissuedastatementontheNationalInternetFinanceRegistrationandDisclosureServicePlatformundertheChinaMutualFinanceAssociation,statingthatithaspassedtheevaluationoftheindividualonlinelendingfunddepositorysystem(P2Ponlinelendinginstitutiondepositorybank"whitelist".).

OnMay22,2020,theofficialwebsiteoftheChinaBankingandInsuranceRegulatoryCommissionshowedthatBaixinBank’sapplicationforcapitalincreaseandshareexpansionandshareholderqualificationswasapproved,andtheChinaBankingandInsuranceRegulatoryCommissionapprovedBaixinBank’sissuanceofnomorethan1.634billionsharesofcapitalincreaseandshareexpansion.plan.Accordingtothe"Approval",theChinaBankingRegulatoryCommissionagreedtoChinaCITICBanktosubscribefor622millionsharesofBaixinBank,holdingatotalof3.422billionsharesofthebank,accountingfor60.75%ofthebank'stotalequityaftertheissuance;agreeingtotheCanadianPensionFundInvestmentCorporationSubscribedfor466millionsharesofBaixinBank,accountingfor8.27%ofthebank’stotalequityaftertheissuance.InadditiontoChinaCITICBank,theoriginalshareholderBaiduCompanyalsoparticipatedintheinvestment.Afterthecapitalincrease,BaixinBank'sregisteredcapitalwillincreaseto5.634billionyuan.

OnAugust15,2020,"BeyondNew-BaiduQuickPassCardProductLaunch"washeldinBeijing.BaiduGroupExecutiveVicePresidentShenDou,ChinaUnionPayExecutiveVicePresidentHuHaozhong,BaixinBankPresidentLiRudongandotherleadingguests,aswellasmanyecologicalpartnersattendedthepressconference.Thefirstdomesticdigitalbankcard---BaiduQuickPassCardwasreleasedatthepressconference.Thiscardisanew-generationdigitalbankcardlaunchedbyBaidu,BaixinBank,andChinaUnionPay.Itdoesnothavethephysicalformofaphysicalcard.ItreliesonBaiduAPPandusessmartappletsasthecarriertoapplyfortheopeningofpureonlineservices.Itcanprovidedigitalfinancialservicessuchasinclusivecredit,changewealthmanagement,paymentandconsumption,andlifepaymentto1billionBaiduusers.

OnApril8,2021,"BornbyAI,DrivetheFuture"-BaixinBankAutoFinanceBrandLaunchConferenceandStrategicSigningCeremonywasheldinBeijingCITICTower.PartyCommitteeMemberandDeputyGeneralManagerofCITICGroup,PartySecretaryandPresidentofChinaCITICBankFangHeying,PartyCommitteeMemberandVicePresidentofChinaCITICBankLuTiangui,SeniorVicePresidentofBaiduGroupandGeneralManagerofIntelligentDrivingBusinessGroupLiZhenyu,PresidentofBaixinBankLiRudong,CheryAutomobileDeputyGeneralManagerJiaYaquan,ShaanxiHeavyDutyTruckFinanceDirectorLingYun,BAICBlueValleyMarketingCompanyChairmanLiuShijin,LeapMotorsPresidentWuBaojun,andmanyindependentbrandautomobilemanufacturersleadersattendedthepressconference.

Atthemeeting,YuXiaohong,assistanttothepresidentofBaixinBank,announcedanewsmartautofinancebrand,andlaunchedtwoproducts,"Baichedai"and"Baishangdai".Inaddition,BaixinBanksignedastrategiccooperationagreementwithChinaCITICBank,CheryAutomobile,ShaanxiHeavyDutyAutomobile,BAICBlueValleyMarketingCompany,ZhejiangLeaperAutomobileandBaiduApollo.

Mainfeatures

BaixinBankisanewtypeofdirectbanking.Customersmainlyobtainbankingproductsandservicesthroughremotechannelssuchascomputers,emails,mobilephones,andtelephones.Withoutbranchoperatingexpensesandmanagementfees,directbankingcanprovidecustomerswithmorecompetitivedepositandloanpricesandlowerhandlingfees.

Importantrole

Thefirstdomesticdirect-salebankinitiatedbythein-depthcooperationbetweenInternetcompaniesandtraditionalbanksandco-sponsoredbystrongalliances,markingBaidu’slargestcapacityandthemostgrowthinfinancialservicesThepotentialverticalserviceareahastakenamajormilestone.TheestablishmentofBaixinBankisalsooficonicsignificanceinthedevelopmentofChina'sbankingindustry,openingupanewmodelof"Internet+Finance".

BaixinBankconductsdirectbankingbusinessintheformofanindependentlegalperson,soitneedstheapprovaloftheChinaBankingRegulatoryCommission.AsthefirstinChina,BaixinBankisclassifiedasa"limitedlicensecommercialbank."InMay2015,theChinaBankingRegulatoryCommissionorganizedsomebankstodiscussdirectbankingsubsidiaries.InJanuary2016,theNationalBankingRegulatoryWorkConferenceproposedthatbankswithmatureguidanceconditionsshouldconductpilotlicensemanagementandsubsidiaryreformsfordirectbankingandotherbusinesssectors.FortheChinaBankingRegulatoryCommission,BaixinBankisaninnovativepilotprogramthathasbeenimplementedsincetheexplorationofsomebusinesssectorsandtheideaof​​thesubsidiarysystemreform.Therefore,itsimplementationisofgreatsignificancetotheinnovativesupervisionofregulatoryagencies.

Developmentprospects

LiQingping,ChairmanofChinaCITICBank,said:"BaixinBankisabankingplatform,anditsmarketpositioningistomanagewealthforthepeopleandfinanceforthegeneralpublic.ItwilltakeadvantageofthebranchadvantagesofCITICBank.,Financialriskcontrol,productR&Dandcustomermanagementcapabilities,aswellasBaidu’sInternettechnologyandusertrafficresources,tocreateadifferentiateddirectbankwithuniquemarketcompetitiveness."

BaiduChairmanandChiefExecutiveOfficerOfficialLiYanhongsaidthatBaixinBank'smodelisexpectedtobecomeamodelforthedevelopmentofChina'sInternetfinance.Baiduhasleadingtechnicalstrength,massiveuserdata,andInternetoperationexperience.Itcanprofileusers'financialneedsaccordingtotheirattributesandpreferences,providecustomerswithinnovativefinancialsolutions,andlookforwardtothefulluseoftheBaixinteaminthefutureBaidu'sdata,technologyandtrafficresourcesprovideuserswithhigh-qualityfinancialservices.

ZhuGuang,seniorvicepresidentofBaidu,said:“Theintelligenttrendoffinancialservicesisgraduallytakingshape.Andartificialintelligencetechnologywilltransformbanksalesandservicechannels,andwillalsoprofoundlychangethewaybanksinteractwithcustomers.WewillThelatestachievementsofBaidu'sartificialintelligenceandbigdatatechnologyinfinancialexplorationwillbeexportedtoBaixinBank,whichwillrepresentthefrontierdirectionoffinancialinnovationandacceleratetheefficientintegrationoffinanceandartificialintelligencetechnology."

BankanalystMaKunpengoncesaidinaninterviewwithJiemianNews,"ForChinaCITICBank,itistheplatformforcontinuingtoconsolidateitsleadingedgeinInternetbanking,andforBaidu,itisthesmoothrealizationofitstrafficinthefinancialindustry.DongXimiao,ExecutiveDeanoftheEvergrowingBankResearchInstitute,believesthatBaixinBankcombinesthedualgenesofcommercialbanksandInternetcompanies,plusaflexibleindependentlegalform,whichmakesituniqueintheindustry.Withitsuniqueadvantages,wehavereasontolookforwardtoitsbroadprospects.AsthefinancialpracticebaseofBaidu'sartificialintelligenceandbigdatatechnology,itwillactivelyexplorehowcommercialbankscantakeapragmaticandinnovativedevelopmentpathunderthewaveoffinancialtechnology.

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