The China Banking Regulatory Commission has approved TCL Group to set up a financial company of its own with a registered capital of CNY500 million.

Lv Zhongli, senior vice president of TCL, will work as president of the new company that is invested by TCL Group, The Bank of East Asia, TCL King (Hohhot) Company and TCL Mobile Communications (Hohhot) Company, with each of them holding 62%, 20%, 14% and 4% of the stake, respectively.

Wang Hongbo, secretary of TCL's Board of Directors, says the company will establish this financial company in order to improve its fund management efficiency. Wang says that the new company will be mainly engaged in providing accounting, financing, credit assessment and related consulting service as well as providing other fund and insurance related service to each of its members.

By June 30 this year, TCL's current liabilities accounted for CNY6.1 billion and bank loans for CNY4.1 billion.