Start-of-year capital increase wave! Are the capital reserves of these financial institutions "thick" enough?

Ask AI · How will new regulatory rules catalyze the wave of capital increases in consumer finance?

Since the beginning of this year, the Jiangsu, Qingdao, Xiamen, Beijing, and other local regulatory bureaus under the China Banking and Insurance Regulatory Commission have publicly announced a series of approvals involving senior management appointments and registered capital changes for multiple consumer finance companies.

According to the approval information, executives such as the deputy general manager of JD Consumer Finance and the assistant general manager of Nanyang Bank-Faba Consumer Finance have taken new positions, showcasing fresh faces.

Additionally, the changes in registered capital of several companies have attracted particular attention. Specifically, Suzhou Bank-Kaiji Consumer Finance increased its capital by 530 million yuan, raising registered capital from 4.2 billion yuan to 4.73 billion yuan, with the two largest shareholders, Jiangsu Bank and Kaiji Commercial Bank, holding 61.32% and 33.41% respectively.

Haier Consumer Finance was approved for a capital increase of 1.028 billion yuan, nearly a 50% increase. The original major shareholder, Haier Group, contributed additional funds, and new shareholders—Qingdao Guoxin Industrial and Financial Holding (Group) Co., Ltd. and Qingdao Lincong Trading Co., Ltd.—were added. After the capital increase, Haier Consumer Finance’s registered capital will rise to 3.118 billion yuan. Notably, this is the fourth capital increase since Haier Consumer Finance was established in 2014, following increases in 2018 (by 500 million yuan), 2022 (by 500 million yuan), and 2024 (by 590 million yuan).

According to statistics from the Financial Times, by 2026, the consumer finance industry has already experienced a wave of intensive capital increases. Besides Suzhou Bank-Kaiji Consumer Finance and Haier Consumer Finance, Hubei Consumer Finance, Beiyin Consumer Finance, and Jinmeixin Consumer Finance have also completed capital increases successively.

Hubei Consumer Finance’s registered capital increased from 1.359 billion yuan to 2.309 billion yuan. The ownership structure was adjusted accordingly, with the two largest shareholders, Hubei Bank and Hubei Small and Medium Enterprise Financial Service Center Co., Ltd., holding 49.55% and 20.79%, respectively.

Beiyin Consumer Finance’s registered capital increased from 850 million yuan to 1 billion yuan. Beijing Bank holds 35.29%, and Santander Consumer Finance Co., Ltd. holds 20%.

Jinmeixin Consumer Finance’s registered capital doubled from 500 million yuan to 1 billion yuan, with Xiamen Jinyuan Financial Holdings and China Trust Commercial Bank each holding 50%.

The acceleration of capital increases in consumer finance companies is directly driven by the “Measures for the Administration of Consumer Finance Companies,” implemented on April 18, 2024, which raised the minimum registered capital requirement to 1 billion yuan and adjusted the conditions and shareholding ratio requirements for major investors.

In this round of capital increases, Beiyin Consumer Finance and Jinmeixin Consumer Finance have reached the minimum “threshold,” while Haier Consumer Finance and Hubei Consumer Finance have far exceeded the “standard line.”

It can be said that behind this wave of intensive capital increases is a profound transformation in the development logic of the consumer finance industry. In the past, the industry focused on scale expansion; now, under the triple drive of stricter regulation, consumption upgrading, and technological empowerment, the development focus has shifted to capital efficiency, risk management, and scene integration.

Currently, among the 31 licensed consumer finance companies, only three have not yet reached the 1 billion yuan registered capital requirement: Mengshang Consumer Finance, Jinshang Consumer Finance, and Shengyin Consumer Finance. Their current registered capitals are 500 million yuan, 500 million yuan, and 300 million yuan, respectively, all significantly below the regulatory minimum.

Some analysts believe that, according to regulatory compliance requirements, the capital supplementation pressure on the remaining three institutions will continue to increase. Meanwhile, the overall industry’s capital strength has risen substantially, which will promote a shift from extensive expansion to refined operation. This will help solidify risk control foundations, better serve inclusive finance, support expanding domestic demand and consumption upgrading, and lay a solid foundation for high-quality, long-term industry development.

Source: Financial Times Client

Reporter: Li Pei

Editor: Yunyang