China’s financial regulator has approved Baidu for the “securities investment fund sales business”, according to a posted release. The approval by the China Securities Regulatory Committee means that Baidu will need to complete “preparatory work” within six months. After that, it will need to make further applications before the acquisition of a license. Obligations include: strictly following regulations, strengthening risk prevention, strictly managing sales behavior, and effectively protecting the legitimate rights and interests of investors.
In April, Baidu spun out its financial service business for $1.9 billion: investors were led by TPG and The Carlyle Group. In a statement at that time, Guang Zhu, CEO of the spun-out entity, Du Xiaoman, said: “In the coming age of fintech, Du Xiaoman will leverage the technological capabilities of Baidu AI to partner with financial institutions and provide technology-driven, trustworthy financial services to consumers in China.”