10 Chinese Consumer Finance Firms Complete Capital Increases Since Start of 2018

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China’s consumer finance market is seeing a wave of expansion with multiple companies in the sector scrambling to raise funds.

Since the start of 2018 at least ten consumer finance companies in China have increased their registered capital.

The latest is Hebei Xingfu Consumer Finance Share Co., Ltd. (河北幸福消费金融股份有限公司), which just announced that it had obtained approval from the Hebei province government for an increase in its registered capital from 300 million yuan to 637 million yuan.

Hunan Changyin Wuba Consumer Finance (湖南长银五八消费金融) has also completed a capital increase since the start of 2019, while Industrial Consumer Finance Co., Ltd. (兴业消费金融) has undergone its second round of fund-raising since the start of 2018, bringing its registered capital to 1.9 billion yuan.

In March 2018 Henan Zhongyuan Consumer Finance Share Co., Ltd. (河南中原消费金融股份有限公司) increased its registered capital from 500 million yuan to 800 million yuan, while in the same month Postal Savings Bank of China Consumer Finance Company (中邮消费金融有限公司) oversaw an increase from 1 billion yuan to 3 billion yuan.

In April 2018 Merchants Union Consumer Finance Company (招联消费金融有限公司) increased its registered capital from 2 billion to 2.859 billion yuan, while Industrial Consumer Finance Co., Ltd. (兴业消费金融股份公司) raised its registered capital from 500 million yuan to 1.2 billion yuan in June.

Haier Consumer Finance (海尔消费金融) increased its registered capital from 500 million yuan to 1 billion yuan in July 2018, and in August Mashang Consumer Finance Share Co., Ltd. (马上消费金融股份有限公司) increased its registered capital from 2.21 billion yuan to 4 billion yuan.

In October Sichuan Jincheng Consumer Finance Co., Ltd. (四川锦程消费金融有限责任公司) increased its registered capital from 320 million yuan to 420 million yuan, while in the same month Harbin Bank of Harbin Consumer Finance Co., Ltd. (哈尔滨哈银消费金融有限责任公司) increased its registered capital from 500 million yuan to 1.05 billion yuan.

Data from the China Banking and Insurance Regulatory Commission’s (CBIRC) financial licensing system indicates that China is currently host to a total of 23 consumer finance companies.

Consumer finance companies first made their debut in China at the start of the decade, with Beijing giving its approval to the establishment of three firms in 2010 – Sichuan Jincheng Consumer Finance Co., Ltd. (四川锦程消费金融有限责任公司), Zhongyin Consumer finance Co., Ltd. (中银消费金融有限公司) and Jiexin Consumer Finance Co., Ltd. (捷信消费金融有限公司).

2011 saw the approval of another licensed consumer finance company by Chinese authorities, followed by two in 2014, and six in both 2015 and 2016.

In 2017 China approved four new consumer finance companies, while the latest consumer finance company to garner a green light from regulators was Xiamen Jinmeixin Consumer Finance Co., Ltd. (厦门金美信消费金融有限责任公司) in September 2018.

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