Figures from the peak body for the Chinese banking sector point to rapid growth in lending by the country’s consumer finance companies since the start of the Covid pandemic.
As of the end of 2021 China was host to a total of 30 consumer finance companies with a collective lending balance of 710.6 billion yuan, according to a report release by the China Banking Association (CBA).
The total lending of China’s consumer finance companies as of the end of 2021 marked an increase of 44.2% compared to the same period the year previously.
Total assets of Chinese consumer finance companies were 753.0 billion yuan at the end of 2021, for a year-on-year (YoY) rise of 43.5%.
CBA data further indicates that the average annual compound growth rate in the loan balance of China’s consumer finance companies was 22.6% during the two year period from 2020 to 2021. The average annual compound growth rate in their total assets was 22.8% over the same period.
The report from CBA said that rapid growth in China’s consumer finance sector during the Covid pandemic arrives amidst a push from Chinese regulators for greater financial inclusion, as well as a strong emphasis on servicing the real economy.