By Clarence Leong


China Construction Bank Corp. said it plans to invest 6 billion yuan ($835.9 million) to set up a consumer finance unit, as the lender seeks to support consumption growth in the Chinese economy.

The unit, CCB Consumer Finance Co., will have a registered capital of CNY7.2 billion, the state-owned lender said late Tuesday in a filing to the Hong Kong exchange.

The investment will be financed by CCB's own funds and has been approved by the China Banking and Insurance Regulatory Commission, it said.

Beijing State-owned Assets Management Co. plans to contribute CNY800 million and Wangfujing Group Co. intends to contribute CNY400 million to establish the unit, it said. CCB will hold a 83.33% stake in the unit, while BSAM and Wangfujing will hold 11.11% and 5.56% stake, respectively.

The establishment of the unit is intended to "boost and support consumption growth, stimulate household consumption potential, and enhance the fundamental role of consumption in economic development," CCB said.


Write to Clarence Leong at clarence.leong@wsj.com


(END) Dow Jones Newswires

09-27-22 2134ET