Consumer Finance Customer Numbers in China Rise 52.29% in 2019


A new report on the consumer finance sector in China points to a surge in customer numbers in 2019.

The “China Consumer Finance Company Development Report (2020)” (中国消费金融公司发展报告(2020)) released by the China Banking Association (CBA) on 19 August indicates that as of the end of 2019 consumer finance firms in China had a total of 127.2792 million customers, for a YoY rise of 52.29%.

Consumer finance customers in China tend to be comparatively young, with people born in the 80’s and 90’s accounting for 90% of the total, and people born in the 90’s around 50%.

As of the end of 2019 the assets of Chinese consumer finance companies totalled 498.807 billion yuan, for a rise of 28.67% compared to the previous year.

The loan balance was 472.293 billion yuan, for a rise of 30.5% compared to the previous year.

The report points to an increase in the non-performing asset disposal capability of consumer finance companies, with over half of them adjusting the standard for non-performing assets from payment in arrears for 90 days to 60 days, and the average provisions coverage ratio for the sector rising to 186.34%.

The average non-performing loan ratio of Chinese consumer finance companies was 2.63% in 2019, for a slight decline of 0.11 percentage points compared to 2018, putting them just ahead of the average for Chinese credit cards.

According to data from Wind of 10 August 2020 China was host to a total of 27 licensed consumer finance companies that had entered operation.

Licensed Chinese consumer finance companies that have commenced operation as of August 2020

No.Consumer finance companyParent company
1Yangguang Consumer FinanceChina Everbright Bank
2Bank of Beijing Consumer FinanceBank of Beijing
3Sichuan Miancheng Consumer Finance Bank of Chengdu
4Bank of China Consumer FinanceBank of China
5Industrial Bank Consumer FinanceIndustrial Bank Co.,
6Baoshang Bank Consumer Finance Baoshang Bank
7Zhongyuan Consumer FinanceZhongyuan Bank
8Changyin Wuba Consumer FinanceBank of Changsha
9 Bank of Harbin Consumer FinanceBank of Harbin
10 Xingfu Consumer FinanceBank of Zhangjiakou
11Shangcheng Consumer FinanceBank of Shanghai
12Jinshang Consumer FinanceBank of Jinshang
13Shengjing Bank Consumer FinanceShengjing Bank
14Shaanxi Bank of Chang’an Consumer FinanceBank of Chang’an
15Zhaolian Consumer FinanceChina Merchants Bank
16Hubei Consumer FinanceBank of Hubei
17 Zhongyou Consumer FinancePostal Savings Bank of China
18 Bank of Hangzhou Consumer FinanceBank of Hangzhou
19 Jieke Consumer FinanceJieke Paifu Group
20Suning Consumer FinanceSuning Group
21Mashang Consumer FinanceZhao Guoqing
22Jinmeixin Consumer FinanceGome and others
23CITIC Consumer FinanceCITIC Group
24Huarong Consumer FinanceChina Huarong
25Haier Consumer FinanceHaier Group
26Xiaomi Consumer FinanceXiaomi
27Ping An Consumer FinancePing An

An in­creas­ing num­ber of tech com­pa­nies and other play­ers out­side the tra­di­tional fi­nan­cial sec­tor in China are also mak­ing for­ays into con­sumer fi­nance. 

These in­clude fintech giant Ant Financial and smart­phone maker Xi­aomi, both of whom are launching con­sumer fi­nance firms in Chongqing. 

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