CITIC Trust has obtained approval from regulators for the launch of a new consumer finance company, marking the first foray by a Chinese trust sector firm into the field.
CITIC Group, CITIC Trust Co., Ltd. and Kingdee International have obtained approval from Chinese regulators to establish CITIC Consumer Finance Company (中信消费金融公司) according to a report from Leiphone.
The new company will have registered capital of 300 billion yuan, with CITIC Group holding the largest share of 35.1%, CITIC Trust taking a 34.9% stake and Kingdee International a 30% stake.
CITIC Trust is reportedly the first trust company to play a leading role in the launch of a consumer finance firm in China.
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.