Shanxi Banking and Insurance Regulatory Bureau Releases Q2 Consumer Complaint Report, Jinshang Consumer Finance Ranks First in Complaints Within Jurisdiction

Beijing News Shell Finance Report (Reporter Huang Xinyu) October 21 — The Office of the Shanxi Banking and Insurance Regulatory Bureau released the “Notice on the Consumer Complaint Situation of the Banking Industry in the Province in the Second Quarter of 2022.” According to the Shanxi Banking and Insurance Regulatory Bureau, in the second quarter of 2022, the bureau and its district branches received and forwarded a total of 682 financial consumer complaints, a decrease of 0.73% quarter-on-quarter. Shanxi Merchant Consumer Finance Co., Ltd. (hereinafter referred to as “Shanxi Merchant Consumer Finance”) received 140 complaints (as shown below), ranking first in the district. At the same time, the reporter also found that in the second quarter of this year, despite a slight increase in net profit, Shanxi Merchant Consumer Finance’s total assets shrank quarter-on-quarter.

Shanxi Province Non-Banking Financial Institution Complaint Situation (Units: cases) Chart / Shanxi Banking and Insurance Regulatory Bureau

In previous quarterly reports, the Shanxi Banking and Insurance Regulatory Bureau noted that among non-banking financial institutions, consumer finance companies have prominent complaints. The current report shows that in the second quarter of 2022, the total complaints against non-banking financial institutions in Shanxi were 143 cases, of which Shanxi Merchant Consumer Finance accounted for 140 cases, a 21.74% increase quarter-on-quarter, representing 97.90% of the total complaints against non-banking financial institutions.

About a month before the release of the Shanxi Province banking industry consumer complaint report for the second quarter, on September 29, the China Banking and Insurance Regulatory Commission issued the “Notice on Further Strengthening Consumer Complaint Handling Work.” The CBIRC stated that it will emphasize consumer complaint assessment orientation and strengthen accountability and traceability rectification. Particularly for the latter, the CBIRC emphasized that responsible personnel and management responsible for consumer complaints that are mishandled or involve responsibility should be held accountable in accordance with relevant regulations.

According to the official website, Shanxi Merchant Consumer Finance was established on February 23, 2016. By the end of 2021, Shanxi Merchant Consumer Finance had issued over 73.2 billion yuan in inclusive consumer loans, serving more than 16.8 million consumers.

Yuxin Technology (300674), which holds a 20% stake in Shanxi Merchant Consumer Finance, reported in its 2022 semi-annual report that as of the end of the reporting period, Shanxi Merchant Consumer Finance’s total revenue was approximately 210 million yuan, a decrease of about 23.64% from 275 million yuan in the previous period; net profit was 25.6137 million yuan, a slight increase from 25.2868 million yuan in the previous period.

However, despite the slight increase in net profit, Shanxi Merchant Consumer Finance experienced a “balance sheet shrinkage” in total assets quarter-on-quarter.

According to Yuxin Technology’s 2022 semi-annual report, as of June 30, 2022, Shanxi Merchant Consumer Finance’s total assets were approximately 7.698 billion yuan, down 2.45% from 7.891 billion yuan in the previous period.

Editor: Song Yuting

Proofreader: Lu Qian

(Responsible Editor: Ma Jinlu HF120)