Clifford Chance

Clifford Chance advises Bank of China (Hong Kong) on JV to establish virtual bank in Hong Kong

Leading international law firm Clifford Chance advised BOC Hong Kong (Holdings) Limited (BOCHK (Holdings)) on the establishment of a joint venture, Livi VB Limited, backed by BOCHK (Holdings), Jingdong Digits Technology Holding Co., Ltd. (JD Digits) and the Jardine Matheson Group (Jardines), which has been granted a banking licence issued by the Hong Kong Monetary Authority (HKMA) to conduct virtual banking business in Hong Kong.

The banking licence granted to Livi VB Limited is one of the first three licences granted by the HKMA for conducting virtual banking business in Hong Kong.

BOCHK (Holdings), JD Digits (through its subsidiary JD New Orbit Technology (Hong Kong) Limited) and Jardines (through its subsidiary JSH Virtual Ventures Holdings Limited) have a total joint initial investment of HK$2.5 billion and a shareholding of 44%, 36% and 20% respectively.

Partner Virginia Lee led on the deal with support from senior associates Queenie Tong, Ryan Wong, and associates Winnie Poon and Vicky Xiang. Partners Yong Bai and Ling Ho also provided support on the project.

Virginia said, "It has been very exciting acting for Bank of China (Hong Kong) on this landmark initiative to be one of the first to establish a virtual bank in Hong Kong. Once again our team is advising on ground breaking Hong Kong deals; this time showcasing our deep expertise in fintech and regulatory matters."