Xiaomi, Bank of Beijing in Net deal

Chinese smartphone maker Xiaomi Corp and Bank of Beijing signed a deal on Wednesday to form a strategic partnership aimed at tapping Internet finance.

Under the partnership, the two sides will form alliances in many sectors, including mobile payments and market expansion.

Based on Xiaomi's online platform, the two companies will offer various financial services, including mobile payments, wealth management and sales of money market funds.

The deal is Xiaomi's first attempt at Internet finance.

Bank of Beijing is expected to develop a tailor-made mobile app for Xiaomi's targeted users and provide financial services to Xiaomi's shareholders and employees.

The bank said in a statement on Tuesday that Zhao Rui'an, its deputy head, spent 220,000 yuan ($36,210) buying 30,000 shares in the bank on Monday, two days before the partnership was announced.

Zhao insisted that buying shares in his own bank was an individual decision.

The bank's share price reached its daily limit on Wednesday, driven by the partnership announcement.