China Everbright Bank plans to make a foray into consumer finance with the launch of a new Beijing-based firm.
China Everbright recently announced the execution of a joint-venture agreement with CYTS (中青旅) and Taipei-headquartered O-Bank (王道银行) for the establishment of Beijing Yangguang Consumer Finance Joint Stock Co. Ltd. (北京阳光消费金融股份有限公司).
According to the announcement Beijing Yangguang will have registered capital of 1 billion yuan, of which China Everbright will contribute 600 million yuan for a 60% equity stake, with CYTS and O-Bank each contributing 200 million yuan for a 20% stake respectively.
China Everbright’s latest mid-year results indicate that it saw net profits of 18.101 billion yuan, for YoY growth of 6.65%.
As of May 2018 a total of 26 companies had obtained consumer finance licenses since the launch of the “Consumer Finance Company Trial Administrative Measures” (消费金融公司试点管理办法) by the Chinese banking regulator in 2009, with roughly 90% of them being affiliated with banks.