Duxiaoman Chongqing Technology, a subsidiary of internet group Baidu’s financial services spinoff, Du Xiaoman Financial, has invested RMB450m ($65m) in China-based online lender Harbin Bank Consumer Finance (HBCF).
The deal was conducted last month but only disclosed yesterday, through a regulatory filing. It gave Duxiaoman a 30% stake in HBCF.
HBCF is a consumer finance subsidiary of financial services firm Harbin Bank, which established the unit in 2016 after it secured regulatory approval to offer personal loans.
The company has entered into a strategic cooperation agreement with Duxiaoman and the two will collaborate on products and services in the retail finance, payment and settlement, inter-bank finance, marketing and financial technology spaces.
HBCF has raised $218m in funding to date, according to the aforementioned securities document. Harbin Bank invested $43m when it established the subsidiary, with another $29.8m provided by undisclosed backers at the same time.
Du Xiaoman Financial was originally known as Baidu Financial Services Group before being spun out of Baidu in April 2018.