Shanxi Banking and Insurance Regulatory Bureau releases the second quarter consumer complaint report, with Jinshang Consumer Finance ranking first in the number of complaints within the jurisdiction.

The Beijing News Shell Finance, reported by Huang Xinyu (a reporter), on October 21, the Shanxi Office of the CBIRC released a notice titled “Circular on Consumer Complaints by Banks in the Whole Province in the Second Quarter of 2022.” According to the Shanxi CBIRC, in the second quarter of 2022, the office and its district-level branches received and forwarded a total of 682 financial consumer complaints, a decrease of 0.73% quarter-on-quarter. The complaint volume of Jinshang Consumer Finance Co., Ltd. (hereinafter referred to as “Jinshang Consumer Finance”) was 140 cases (as shown in the chart below), ranking first among the jurisdictions. At the same time, the reporter also found that in the second quarter of this year, Jinshang Consumer Finance experienced a “shrinking balance sheet” in its total asset size quarter-on-quarter, despite a slight increase in net profit.

Chart of consumer complaint situations of non-bank financial institutions in Shanxi (Unit: cases) / Shanxi CBIRC

In a circular for the previous quarter, the Shanxi CBIRC had previously stated that among non-bank financial institutions, consumer finance companies accounted for prominent consumer complaints. The current circular shows that in the second quarter of 2022, the total number of complaints against non-bank financial institutions in Shanxi Province was 143 cases. Among them, Jinshang Consumer Finance had 140 cases, an increase of 21.74% quarter-on-quarter, accounting for 97.90% of the total complaints against non-bank financial institutions.

Just nearly one month before the release of the circular on consumer complaints by banks across the province in Shanxi Province in the second quarter—on September 29— the CBIRC issued the “Notice on Further Strengthening the Handling of Consumer Complaints.” The CBIRC said it would highlight the performance appraisal orientation for consumer complaint handling, while also strengthening accountability and traceable remediation. Especially with respect to the latter, the CBIRC emphasized that for consumer complaint matters for which an institution bears responsibility and for which handling is inadequate, direct responsible personnel and management personnel shall be held accountable in accordance with relevant regulations.

According to the website, Jinshang Consumer Finance was established on February 23, 2016. By the end of 2021, Jinshang Consumer Finance had cumulatively issued more than 732 billion yuan in inclusive consumer credit and had cumulatively served more than 16.8 million consumers.

The 2022 interim report of Uxin Technology (300674), which holds a 20% stake in Jinshang Consumer Finance, shows that as of the end of the reporting period, Jinshang Consumer Finance’s total revenue was approximately 210 million yuan, down about 23.64% quarter-on-quarter from 275 million yuan in the previous period; net profit was 25.6137 million yuan, a slight increase quarter-on-quarter from 25.2868 million yuan in the previous period.

However, despite the slight increase in net profit, Jinshang Consumer Finance saw a “shrinking balance sheet” in its total assets on a quarter-on-quarter basis.

Also, according to the 2022 interim report of Uxin Technology, as of the end of June 2022, Jinshang Consumer Finance’s total asset size was approximately 7.698 billion yuan, down from 7.891 billion yuan in the previous period, a quarter-on-quarter decrease of 2.45%.

Editor: Song Yuting

Proofreader: Lu Xi

(Editor-in-charge: Ma LuLiu HF120)