ZTE, global provider of telecommunications equipment and network solutions, on Monday announced that it has established a group finance company, ZTE Group Finance Co. Ltd. (ZTEFC), representing a new chapter in the company’s strategic collaboration with the banking system.

Approved by the Chinese Banking Regulatory Commission, the new establishment has a registered capital fund of RMB 1 billion and is based in Shenzhen, China. It is a non-bank financial institution 100% backed by ZTE Corporation.

Mr. Wei Zaisheng, Executive Vice President and Chief Financial Officer of ZTE, will serve as the Chairman of the new establishment.

A signing ceremony for the company’s establishment and partner agreement was held in Shenzhen on July 22 by ZTE Chairman Hou Weigui and Mr. Wei. At the ceremony, Mr. Shi Chunmao, Vice Chairman of ZTEFC, on behalf of the new establishment, signed the strategic cooperation agreement with representatives from five leading Chinese banks including the China Development Bank.

Mr Hou said: “The establishment of ZTEFC represents a breakthrough in our relationship with the finance industry which will lay the groundwork for the corporation’s future development. ZTEFC will perform its role in financial servicing to enhance the efficiency of the Group’s fund application process and to deepen its pool of financial sources. This will have the effect of minimizing the company’s financing costs and financial risks, while supporting its global growth and development.”