Jinshang Bank spent 730 million to increase its holdings, gaining absolute controlling stake in a consumer finance company.

Securities Times reporter Huang Yulin

Recently, Jinshang Bank announced that it plans to invest 730 million yuan to subscribe for 500 million new shares issued by Jinshang Consumer Finance Co., Ltd. (hereinafter referred to as "Jinshang Consumer Finance"). After the capital injection is completed, Jinshang Consumer Finance will officially become a subsidiary of Jinshang Bank, and its financial performance will be fully consolidated into the parent bank's statements.

According to information, Jinshang Consumer Finance was established in February 2016. It is the 14th licensed consumer finance institution in the country approved by the former China Banking Regulatory Commission, and the only one in Shanxi Province. This transaction is its first capital increase and share expansion since its establishment ten years ago, and its equity structure has undergone significant changes. After the above transaction is completed, the registered capital of Jinshang Consumer Finance will increase to 1 billion yuan, and Jinshang Bank's shareholding ratio will jump to 70%, achieving absolute controlling stake.

Dong Ximiao, chief economist of Zhaolian and executive director of the Shanghai Finance and Development Laboratory, said that Jinshang Bank's 730 million yuan capital increase in Jinshang Consumer Finance's stake is directly driven by the need to meet the hard regulatory requirements in the "Consumer Finance Company Management Measures" issued in 2024, which stipulate "minimum registered capital of 1 billion yuan" and "major investor shareholding ratio not less than 50%". Through the capital increase, Jinshang Consumer Finance has solidified its capital base and broken the core bottleneck restricting its business development space.

(Editor: Qian Xiaorui)

Keywords: