China's Suning gains regulator approval to provide fund payment service

Reuters

HONG KONG, Oct 11 (Reuters) - Home appliance retailer SuningCommerce Group Co Ltd on Friday said the ChinaSecurities Regulatory Commission has given the go-ahead for itssubsidiary to provide payment and settlement services for onlinemutual fund sales.

Suning, in a filing to the Shenzhen Stock Exchange, said itis still awaiting approval to operate a mutual fund e-commerceplatform.

Suning, like other home appliance retailers, has been forcedto rethink its business model and expand into areas such ase-commerce to chase a growing number of internet shoppers.

Suning, which competes with GOME Electrical AppliancesHoldings Ltd backed by U.S. asset manager BainCapital, in August said it aimed to set up a private bank afterthe government said it would promote the establishment of morefinancial institutions to support cash-starved small companies.

Dominant e-commerce player Alibaba Group has beenleading a drive by internet companies into highly regulatedfinancial services, and earlier this week an online paymentaffiliate said it would take control of Tianhong AssetManagement Co.

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