SINGAPORE (Sept 21): Tencent Holdings is coming for your dollars.

Through wholly-owned subsidiary Tencent Mobility, the Chinese internet giant is investing HK$2.86 billion ($493 million) for a 4.95% stake in China International Capital Corporation (CICC), one of the mainland’s leading investment banks.

Tencent will subscribe for some 207.5 million new Hong Kong-listed shares of CICC at HK$13.80 each, representing an 11.0% discount to the stock’s closing price of HK$15.50 on Wednesday.

As at 11.10am on Thursday, shares in CICC are trading 15.1% higher at HK$17.84.

In addition, CICC and Tencent on Wednesday entered into a strategic cooperation framework agreement, which would mainly focus on financial services.

The companies will also set up a steering committee, co-chaired by senior management from both sides, to promote the effective implementation of the strategic cooperation.

In a filing to the Hong Kong stock exchange on Wednesday, CICC says precision marketing and big data analysis have already been identified as some of the key directions for potential cooperation.

China’s first joint venture investment bank, CICC was founded in 1995 in a tie-up between state-owned China Construction Bank and Morgan Stanley, which later sold its stake in the bank in 2010.

Headquartered in Beijing, CICC also has offices in Singapore, Hong Kong, London, and New York.

Tencent, best known for its messaging app WeChat, last month became only the second Asian company – after Alibaba Group – to surpass US$400 billion in market cap. Its investment in CICC comes amid a push into wealth management by other start-up giants, and further blurs the line between the technology and finance sectors.

Jack Ma’s Alibaba in June muscled its way into the wealth management space as its financial affiliate, Ant Financial, launched a new platform that allows consumers to buy financial goods directly from financial institutions. These include insurance products and fixed-term deposit products.

Meanwhile, Reuters last week reported that JD Finance, a unit of China’s second-largest e-commerce firm, is in talks to buy a 24% stake worth about US$1.5 billion ($2.0 billion) in First Capital Securities Co, one of China’s few listed private brokers.