In a move seen as a sign of new firms taking on state-controlled banks, China’s Tencent Holdings, an internet firm, has reportedly won permission to begin banking operations.

In a move seen as a sign of new firms taking on state-controlled banks, China’s Tencent Holdings, an internet firm, has reportedly won permission to begin banking operations.

Tencent Holdings is China’s largest internet firm by market value. It will be the first among several private companies to start its banking business soon after getting approval from the banking regulator. The move is seen as how China is trying to weaken the grip of state-owned enterprises, as signalled a year ago by the new leadership of the ruling Communist Party.

China Banking Regulatory Commission reportedly said in a statement it has granted approval to Tencent to start its banking operations. This publication checked the regulator's website but was unable to locate a statement.

The development also comes as Alibaba, the newly-floated e-commerce giant, has already pushed into the wealth management sector, highlighting how tech-driven business platforms are being embraced as new channels for banking and finance in the country.

Shenzhen Qianhai Weizhong Bank, funded by Tencent, Shenzhen Baiyeyuan Investment and Shenzhen Liye Group, had a registered capital of RMB3 billion ($484.93 million), the regulator is reported to have said. The entity is also known as Webank.