The capital increase of Internet giants to their online microfinance companies is still ongoing. On January 12, the reporter of Beijing business daily noted that Fuzhou 360 Security Technology Inc(601360) online small loan Co., Ltd. (hereinafter referred to as “360 small loan”) increased its capital from 1 billion yuan to 5 billion yuan, which once again triggered a heated discussion in the industry about the capital increase of online small loan companies. Behind the intensive capital increase is a regulatory document that has not been officially implemented.
360 small loan capital increase to 5 billion yuan
The registered capital of the small loan company is 5 billion yuan, and new members are added to the “club”. According to the national enterprise credit information publicity system, the capital increase of 360 small loans was approved on January 5, and the registered capital was changed from 1 billion yuan to 5 billion yuan. This is also the second capital increase of 360 small loan in nearly four months. In September 2021, the registered capital of 360 small loan increased from 500 million yuan to 1 billion yuan.
It is understood that 360 small loan, established in March 2017, is a wholly-owned subsidiary of Shanghai Qiyu Information Technology Co., Ltd. The latter is wholly owned by Shanghai Qibu Tianxia Information Technology Co., Ltd., the main operation company of 360 digital technology.
For the capital increase reasons and follow-up business planning of 360 small loans, the reporter of Beijing business daily learned from 360 digital department, but as of press time, no reply had been received from the other party.
It is worth mentioning that 360 digital is not the first Internet platform in the industry to increase the capital of its small loan companies on a large scale. Since 2021, many leading Internet companies have increased the capital of its small loan companies. According to the statistics of the reporter of Beijing business daily, including 360 small loans, there are 10 small loan companies in the industry with a registered capital of 5 billion yuan, involving many Internet companies such as ant, Tencent, meituan, Suning and Baidu.
Among them, Chongqing ant small and micro microfinance Co., Ltd., a subsidiary of ant group, increased its capital to 8 billion yuan in 2018, and then further increased its capital to 12 billion yuan. It is also a small loan company with the highest registered capital in the industry. A number of other institutions completed the capital increase in 2021.
For example, in April 2021, Tencent’s Shenzhen TenPay online finance microfinance Co., Ltd. increased its capital from 2.5 billion yuan to 5 billion yuan; Shenzhen Zhongrong micro loan Co., Ltd., a subsidiary of Shenzhen Zhongrong micro loan Co., Ltd., increased its capital from 3 billion yuan to 5 billion yuan in June 2021; The registered capital of Chongqing meituan Sankuai microfinance Co., Ltd., a subsidiary of meituan, increased from 3.058 billion yuan to 5 billion yuan in August 2021
The tide of capital increase set off in 2021 will continue in 2022. Huang Dazhi, senior researcher of Suning Financial Research Institute, told the Beijing Business Daily that it is common for Internet giants to layout financial businesses, and to carry out self operated financial businesses such as loans and consumption stages, they must hold financial licenses, including the layout of financial licenses such as consumer finance companies and banks, as well as the establishment of online small loan companies that can expand across provinces.
\u3000\u3000 “In terms of the difficulty of obtaining licenses, online small loan licenses are easier to achieve than those of consumer finance, banks and other institutions. At the same time, small loan licenses are also constrained by regulatory requirements such as registered capital and leverage ratio, and relevant institutions have made timely adjustments according to their own business development. After new requirements are put forward in the regulatory measures, competent institutions will also be in the regulatory framework Adjust within. ” Huang Dazhi pointed out.
increased polarization
For the intensive capital increase of Internet platform, it is generally believed in the industry that it is to meet the requirements of the Interim Measures for the administration of online microfinance business (Draft for comments) (hereinafter referred to as the Interim Measures). In November 2020, the China Banking and Insurance Regulatory Commission publicly solicited opinions on the Interim Measures and made clear provisions on the business scope, leverage ratio and loan amount of online small loan companies.
In terms of registered capital, the Interim Measures propose that the registered capital of small loan companies operating online small loan business shall not be less than RMB 1 billion, and shall be paid in monetary capital at one time. The registered capital of a microfinance company that operates network microfinance business across provincial administrative regions shall not be less than RMB 5 billion, and it shall be a one-time paid in monetary capital.
Although the interim measures have not yet been implemented, it has become an important choice for the Internet platform to first complete the capital increase of its small loan companies in accordance with this provision. “Allowing cross provincial operation is an important value embodiment of the network small loan license, and also has a prominent impact on the business layout of the Internet platform.” Huang Dazhi said.
Huang Dazhi bluntly said that at present, some Internet platform financial licenses are relatively perfect, but online small loans are still an indispensable part of them. According to the regulatory requirements, based on the principle of small and decentralized, small loan companies mainly serve the key service objects of Inclusive Finance such as small and micro enterprises, farmers and urban low-income people. They can also give play to the channel and cost advantages of online microfinance in supporting the development of the real economy, and help the Internet platform create value in small and micro credit.
“After the formal implementation of the interim measures, the competition pattern of the small loan industry is facing a new round of reshuffle. Small loan companies with strong shareholders and financial strength can complete compliance rectification within the specified time according to regulatory requirements.” Huang Dazhi said that more small loan companies will accelerate their departure in the future. Meanwhile, small loan companies with strong shareholder strength will occupy a large market share, the industry concentration will gradually increase, the “Matthew effect” will gradually highlight, and the industry polarization will intensify.
