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.

Beijing News Shell Finance reports (by Huang Xinyu). On October 21, the office of the Shanxi CBIRC issued a notice titled “Circular on the Consumer Complaint Situation of Banking Industry in the Whole Province in the Second Quarter of 2022.” According to the Shanxi CBIRC, in the second quarter of 2022, the total number of financial consumer complaints received and forwarded by the bureau and its affiliated branches was 682 cases, representing a 0.73% decrease quarter over quarter. The number of complaints against Jinshang Consumer Finance Co., Ltd. (hereinafter referred to as “Jinshang Xiaojin”) was 140 cases (as shown in the figure below), ranking first in its jurisdiction. At the same time, the reporter also found that in this year’s second quarter, Jinshang Xiaojin experienced a “balance-sheet contraction” in the quarter-over-quarter total asset size while net profit increased slightly.

Shanxi Province non-bank financial institutions’ complaint situation (unit: cases) / Shanxi CBIRC

In a circular from the previous quarter, the Shanxi CBIRC had previously stated that among non-bank financial institutions, consumer finance companies had prominent consumer complaint issues. The current circular shows that in the second quarter of 2022, the total number of complaints by non-bank financial institutions in Shanxi Province was 143 cases. Of these, Jinshang Xiaojin accounted for 140 cases, up 21.74% quarter over quarter, and made up 97.90% of the total complaints of non-bank financial institutions.

Just nearly one month before the release of the circular on consumer complaints in the banking industry across Shanxi Province in the second quarter, that is, on September 29, the CBIRC issued the “Notice on Further Strengthening the Handling of Consumer Complaints.” The CBIRC stated that it will highlight the consumer complaint assessment-oriented approach, while also strengthening accountability tracing and source-based remediation. Especially regarding the latter, the CBIRC emphasized that for consumer complaint matters for which institutions are responsible and where handling is ineffective, direct responsible personnel and management personnel must be held accountable in accordance with relevant regulations.

According to information on its official website, Jinshang Xiaojin was established on February 23, 2016. By the end of 2021, Jinshang Xiaojin had cumulatively issued more than 73.2 billion yuan in inclusive consumer credit and cumulatively served more than 16.8 million consumers.

The 2022 interim report of Yuxin Technology (300674), which holds a 20% stake in Jinshang Xiaojin, shows that as of the end of the reporting period, Jinshang Xiaojin’s total operating revenue was about 210 million yuan, down about 23.64% quarter over quarter from the previous period’s 275 million yuan; net profit was 25.6137 million yuan, up slightly quarter over quarter from the previous period’s 25.2868 million yuan.

But despite the slight increase in net profit, Jinshang Xiaojin showed a quarter-over-quarter contraction in total assets.

Also according to Yuxin Technology’s 2022 interim report disclosure, as of the end of June 2022, Jinshang Xiaojin’s total asset size was about 7.7B yuan, down 2.45% quarter over quarter from the previous period’s 7.89B yuan.

Editor Song Yuting

Proofreader Lu Qian

(Editor-in-charge: Ma Lu L HF120)

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