Mizuho makes move on Chinese fintech start-ups
Mizuho has its eyes on Chinese fintech start-ups with the signing of a memorandum of understanding (MoU) for business cooperation with Zhongguancun Development Group (ZDG).
Beijing’s Zhongguancun area, also referred to as “China’s Silicon Valley”, is home to universities such as Tsinghua University and Peking University, and research institutions including the Chinese Academy of Sciences.
According to the bank, the area hosts approximately 20,000 start-ups – a sixth of all start-ups in China – which are engaged in industries such as smart transportation and artificial intelligence (AI) technology.
Under this MoU, Mizuho says it will provide funding, and help with overseas expansion and alliances with Japanese companies. It’s a smart move by the bank to tap into a very juicy market.
ZDG is a state-owned enterprise wholly-owned by the Beijing Municipal Government. It was established in April 2010 and promotes the growth and development of start-ups primarily located in Zhongguancun.
In addition to providing investments of CNY 80 billion ($11.8 billion) and financing to start-ups of CNY 300 billion ($44.5 billion), ZDG leases office space via its 26 tech parks located throughout Beijing.