Commercial lender China Everbright Bank has just obtained approval for its consumer finance vehicle to commence operations in the Chinese capital.
On 10 August Everbright announced that it had obtained approval from Beijing authorities for its share-controlled subsidiary Beijing Everbright Consumer Finance Share Limited Company (北京阳光消费金融股份有限公司) to start business.
According to the approval Everbright Consumer Finance has registered capital of 1 billion yuan and is registered in Beijing, while its main operations include personal consumer loans.
An increasing number of traditional finance companies as well as tech firm in China have expanded into the consumer finance sector, amidst a push from the central government to bolster domestic demand.
In January smartphone maker Xiaomi obtained approval to establish a consumer finance company in the central Chinese megalopolis of Chongqing, and in early April Ping An Group obtained approval for its consumer finance vehicle in Shanghai to commence operations.
Baidu and Sina have also made investments in Chinese consumer finance vehicles, with Baidu grabbing a stake in a Heilongjiang consumer finance company in May of last year via fintech subsidiary Du Xiaoman Financial.