WeBank looking to raise $450 million

Tencent Holdings Ltd is taking part in a fundraising round for WeBank that will value its online financial affiliate at about $5.5 billion and keep its stake at roughly 30 percent, two sources familiar with the deal said on Wednesday.

WeBank is raising about $450 million via a round that will also include Singaporean state investment company Temasek Holdings Pte and other investors, said one of the sources, who asked not to be identified.

The rapid growth of China's online financial services sector is drawing interest from investors, as a growing crop of startups and Web-oriented services offer credit to smaller companies and individuals under-served by state lenders.