Date
18 December 2017
Tencent's Pony Ma plans to invest up to 10 billion yuan in Shenzhen's Qianhai district. Photo: Reuters
Tencent's Pony Ma plans to invest up to 10 billion yuan in Shenzhen's Qianhai district. Photo: Reuters

Tencent wins 1.5 bln yuan site in Qianhai for Penguin Bank

Tencent Holdings Ltd (00700.HK) on Thursday won a public auction for a land parcel in Shenzhen’s Qianhai district for 1.55 billion yuan (US$251.6 million), according to Shenzhen Land & Real Esate Exchange Center.

The technology giant plans to build at the 24,947 square meter site the headquarters of a private bank to handle most of its internet-based finance business, according to some mainland newspapers. It may also name the project “Penguin Bank”, the newspapers said, although Tencent has not confirmed this.

The price translates to 8,138 yuan per square meter, down around 50 percent from the last bidding in the district and suggesting a huge potential revaluation of property assets in the area.

The State Administration for Industry and Commerce has approved Tencent’s application for the Penguin Bank name, according to a SAIC statement released on April 1.

Tencent is required to build a self-use office building at the site, and pay an annual tax of at least 500 million yuan to the local government for 10 years from the completion of the project, 21CN Business Herald reported, adding that the company will enjoy a 15 percent tax break as an information services provider.

Tencent chairman Pony Ma earlier voiced optimism on the prospects of financial innovation industries in Qianhai, and his company was investing 1.6 billion yuan in six operations in the district. These operations will include internet finance, WeChat payments and micro loans.

The company will increase its investment in the district to at least 10 billion yuan in the coming years, Ma was quoted as saying.

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