Financial conglomerate Ping An Insurance has just obtained approval from regulators for its consumer finance vehicle to commence operations.
The Shanghai Banking and Insurance Regulatory Authority recently announced that it had given its approval for Ping An Consumer Finance Co., Ltd. (平安消费金融有限公司) to commence operation, according to domestic media reports from 9 April.
The approval gives Ping An Insurance permission to provide personal consumer loans, accept deposits from the domestic subsidiary companies and domestic shareholders of its own shareholders, make loans to domestic financial institutions, and issue financial bonds and engage in domestic interbank lending subject to approvals.
Ping An Consumer Finance has registered capital of 5 billion yuan, with capital contributing parties including:
- Ping An Insurance – 1.5 billion yuan for 30% equity,
- Rong Yi Co., Ltd. (融熠有限公司) – 1.4 billion yuan for 28% equity,
- Wei Kun (Shanghai) Keji Fuwu Co., Ltd. (未鲲（上海）科技服务有限公司) – 1.35 billino yuan for 27% equity,
- Mianjiong (Shenzhen) Keji Fuwu Co., Ltd. (锦炯（深圳）科技服务有限公司) – 750 million yuan for 15% of equity.
Chen Dongqi (陈东起), the legal representative and executive director of Ping An Puhui Xinxi Services Co., Ltd. (平安普惠信息服务有限公司), has obtained approval to serve as chair of Ping An Consumer Finance.
Rumours first spread that Ping An Insurance planned to apply for a consumer finance license once Ping An vehicle Lufax announced its withdrawal from China’s much-beleaguered P2P online lending operations.
In its 2019 third quarter report Ping An Insurance indicated that it planned to establish a nationwide fintech consumer finance company as a joint-venture.