Another consumer finance firm has surpassed the 10 billion yuan mark. On August 11, it was reported that the Shanxi Regulatory Bureau of the National Financial Regulatory Administration approved a 500 million yuan capital increase for Jinshang Consumer Finance Co., Ltd. (referred to as Jinshang Consumer Finance), contributed by JINSHANG BANK. Following this increase, the registered capital of Jinshang Consumer Finance will rise from 500 million yuan to 1 billion yuan.
Under the mandatory minimum registered capital requirement of 1 billion yuan, consumer finance institutions that have not yet met the threshold must secure capital increases to comply with regulations for legitimate operations. With Jinshang Consumer Finance completing its capital increase, only Mengshang Consumer Finance and Shengyin Consumer Finance remain below the required threshold. The considerations behind this delay involve shareholder willingness to invest, the institution's own operational capabilities, and external capital costs. Some analysts noted that the failure of these two tail-end firms to meet the standard highlights the survival challenges faced by weaker players in the consumer finance industry.
Jinshang Consumer Finance's Capital Increase to 1 Billion Yuan
According to information from the Shanxi Regulatory Bureau, the approval of a 500 million yuan capital increase for Jinshang Consumer Finance by JINSHANG BANK has been granted, along with approval for changes in registered capital and adjustments to the equity structure. Post-increase, the registered capital of Jinshang Consumer Finance will be 1 billion yuan. This capital increase was anticipated by the market. Previously, JINSHANG BANK, listed in Hong Kong, announced plans to subscribe for 500 million new shares of Jinshang Consumer Finance at 1.46 yuan per share, totaling 730 million yuan, with the financial results of Jinshang Consumer Finance to be consolidated into JINSHANG BANK's statements.
In comparison, the composition of Jinshang Consumer Finance's five original shareholders remained unchanged in this round, but their shareholdings were adjusted. JINSHANG BANK, as the largest shareholder, will hold 700 million shares, increasing its stake from 40% to 70%. After the controlling shareholder's stake was further concentrated, the remaining shareholders' stakes were halved proportionally. Specifically, Shanghai Rongda Investment Management Co., Ltd. (referred to as Rongda Investment) will hold 125 million shares of Jinshang Consumer Finance, with its stake dropping from 25% to 12.5%; Tianjin Yuxin Yicheng Technology Co., Ltd. will hold 100 million shares, with its stake falling from 20% to 10%; Shanxi Huayu Commercial Development Co., Ltd. will hold 40 million shares, with its stake reducing from 8% to 4%; and Shanxi Meetall Chain Supermarket Co., Ltd. will hold 35 million shares, with its stake decreasing from 7% to 3.5%.
Public information from sources like Tianyancha and the company's website shows that Jinshang Consumer Finance was established in February 2016 with an initial registered capital of 500 million yuan. In early 2023, Rongda Investment received approval to acquire 125 million shares of Jinshang Consumer Finance from Beijing Qifei Xiangyi Business Consulting Co., Ltd., becoming the second-largest shareholder. Apart from that, the registered capital and equity structure of Jinshang Consumer Finance had remained unchanged since its inception.
In the view of Wang Pengbo, Chief Analyst at Botong Consulting, the primary goal of JINSHANG BANK's sole capital injection is to meet compliance requirements under the "Consumer Finance Company Management Measures" (referred to as the "Management Measures"). By filling the registered capital gap and raising the controlling shareholder's stake to 70%, it satisfies all regulatory standards. Wang noted that besides JINSHANG BANK, none of the other original shareholders added funds. For Jinshang Consumer Finance, the passive dilution of other stakes means the parent bank gains full control over operations, resolving past issues of dispersed governance among multiple shareholders. This will improve efficiency in risk control and business planning, while the increased capital base can expand credit lending space, leveraging the national consumer finance license to break geographical limitations of local city commercial banks and enhance its retail business layout.
Su Xiaorui, Senior Researcher at Suxi Zhixi, added that the capital increase strengthens Jinshang Consumer Finance's capital strength and its ability to withstand risks. The increased stake of the major shareholder, JINSHANG BANK, not only better meets compliance requirements but also reinforces its shareholder position, laying a solid foundation for future collaborative development. Currently, the capital increase for Jinshang Consumer Finance has not yet been reflected in business registration changes. A Beijing Business Daily reporter contacted Jinshang Consumer Finance for updates on the progress and follow-up business plans, but received no response by the deadline.
Two Institutions Still Below Standard
In March 2024, the National Financial Regulatory Administration revised and implemented the "Consumer Finance Company Management Measures," raising the minimum registered capital for consumer finance companies from 300 million yuan to 1 billion yuan and requiring the main shareholder's stake to increase from 30% to 50%. Later that year, the "Consumer Finance Company Regulatory Rating Measures" were introduced, with "capital management right" accounting for a 15% weight in the scoring. Initially, nine consumer finance institutions had registered capital below the 1 billion yuan threshold. Following the measures, capital increases became frequent, with some institutions moving closer to the 1 billion yuan mark. Before Jinshang Consumer Finance, Jinmeixin Consumer Finance received approval in February 2026 for a 500 million yuan increase, bringing its registered capital to 1 billion yuan while keeping original shareholders and ratios unchanged.
After Jinshang Consumer Finance crossed the 1 billion yuan threshold, only two of the 31 licensed consumer finance companies nationwide still fail to meet the standard. A review by Beijing Business Daily found that Mengshang Consumer Finance and Shengyin Consumer Finance have registered capitals of 500 million yuan and 300 million yuan, respectively, remaining below the requirement. For these two institutions, financing ability is a key hurdle in the capital increase process. An industry insider noted that as industry dividends fade, the market has entered a phase of stock competition, where shareholder willingness to invest is closely tied to actual operational performance and investment returns. If seeking external capital, high funding costs are also a significant obstacle. Compared to top-tier players, smaller consumer finance institutions have limited financing channels, leading to greater constraints on the capital side.
More than two years after the formal implementation of the "Management Measures," some institutions still fail to meet standards. Wang Pengbo analyzed that the slow progress in capital increases for small and medium-sized consumer finance companies is primarily due to multiple practical constraints post-regulation. Most institutions rely on regional small and medium-sized banks as parent entities, which themselves have limited capital reserves and struggle to provide large sums for downstream investments. Additionally, the credit industry has seen ongoing volatility, with many smaller firms facing asset quality pressure and fluctuating profitability. External industrial shareholders, lacking stable returns, are reluctant to participate in capital increases. This is compounded by the overall slowdown in consumer credit industry growth, intensifying market homogenization and lowering capital entry willingness.
Su Xiaorui believes that the failure of two tail-end consumer finance companies to meet standards reflects the survival difficulties of weak players in the industry. This may stem from various factors: first, disagreements among shareholders on who should lead the increase, the proportion of each shareholder's contribution, and the form of capital injection; second, the parent banks of these two institutions, such as Mengshang Bank and Shengjing Bank, face their own operational challenges, making support for their consumer finance subsidiaries a lower priority. Su suggested that these institutions should enhance shareholder communication and accelerate compliance progress for capital increases, considering corporate governance and brand image. A Beijing Business Daily reporter contacted Mengshang Consumer Finance and Shengyin Consumer Finance for details on their capital increase plans and obstacles, but received no response by the deadline.
Small and Medium-Sized Institutions Should Not Blindly Expand Scale
While some smaller consumer finance firms struggle to meet the 1 billion yuan compliance baseline, top-tier institutions have further strengthened their capital. According to incomplete statistics from Beijing Business Daily, since 2026, several consumer finance companies, including Beiyin Consumer Finance, Jinmeixin Consumer Finance, Suyin Kaiji Consumer Finance, Haier Consumer Finance, and Changyin Wuba Consumer Finance, have completed new rounds of capital increases. Jinshang Consumer Finance is the latest to receive approval. Among these, Beiyin Consumer Finance, Jinmeixin Consumer Finance, and Jinshang Consumer Finance increased their capital to 1 billion yuan. Suyin Kaiji Consumer Finance raised its capital from 4.2 billion yuan to 4.73 billion yuan, Haier Consumer Finance from 2.09 billion yuan to 3.118 billion yuan, and Changyin Wuba Consumer Finance from 1.124 billion yuan to 1.945 billion yuan.
Under regulatory requirements, the registered capital of licensed consumer finance institutions must be fully paid in monetary form at once, meaning it is not just a book figure but a critical support for business scale, risk resistance, and external financing capacity. Wang Pengbo noted that meeting the capital requirement first ensures compliance with regulatory capital adequacy standards, preventing restrictions on business operations and allowing for larger lending limits. A robust capital base enables provisioning for bad debts, enhancing risk resistance against overdue assets, and provides sufficient capital to expand into diverse consumer credit scenarios and steadily grow business scale. Wang suggested that small and medium-sized consumer finance institutions should avoid blindly following large-scale online credit expansion. Instead, they should focus on the regions of their shareholders, deeply serving local wage-earning groups and county-level daily consumption scenarios, steering clear of the common homogenized online credit track. Prioritizing asset quality, controlling credit overdue levels, and maintaining stable profitability will facilitate future capital increases. Additionally, leveraging parent bank branches and local merchant resources for scenario-based installment business, with a focus on refined operations, can steadily advance business development.
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