Han Kun assists Baidu to establish Baixin Bank and successfully obtain approval from the China Banking Regulatory Commission
January, 2017 - Beijing, Mainland China
On January 5, 2017, China CITIC Bank Corporation Ltd. ("CITIC") and Fujian Baidu Borui Internet Technology Co., Ltd. ("Baidu") received approval from the China Banking Regulatory Commission ("CBRC") for the establishment of China CITIC Baixin Bank Corporation Ltd. ("Baixin Bank") in Beijing. As of now, Baixin Bank represents the first PRC direct bank to be established in the form of an independent legal entity. Pursuant to the CBRC approval, CITIC and Baidu are promoters of Baixin Bank, and they have subscribed to 1,400,000,000 and 600,000,000 ordinary shares, representing 70% and 30% equity ownership, respectively.
Baixin Bank will conduct its direct banking business as an independent legal entity, which is an achievement for CBRC's innovative pilot program that explores banks' business segments and proposes bank subsidiary reforms. The program will also lead to a new mode of financial development that is oriented towards "Finance + Internet". The establishment of Baixin Bank is notable not only as an innovative development in the banking industry in China, but also as an innovation in regulatory oversight.
Han Kun's legal services mainly included acting for Baidu in studying the feasibility of direct banking, drafting and revising the promoters' agreement and the articles of association, and preparing and revising the application materials to establish Baixin Bank.
