Internet giants are increasing their network small loan capital. On January 17, the reporter noticed that the registered capital of Fuzhou 360 Security Technology Inc(601360) online microfinance Co., Ltd. (hereinafter referred to as “360 small loans”) increased from 1 billion yuan to 5 billion yuan. After combing, it is found that many Internet giants, including ant, Tencent, meituan, Suning, today’s headlines and Baidu, have successively increased their capital in their online small loan companies.
In the view of industry analysts, online small loans have the qualification of nationwide exhibition, which is highly consistent with the Internet attribute of giants. Meanwhile, the granting of consumer finance licenses slowed down in 2021. It has become a realistic path for some giants to choose network small loan licenses for capital increase to realize scale expansion. In addition, affected by the new industry regulations, capital increase is also the company’s determination to seek further compliance operation and development
capital increase after April
The industrial and commercial change of 360 small loans under 360 digital branch occurred on January 5, and the registered capital increased from 1 billion yuan to 5 billion yuan. Statistics show that 360 small loan was established in March 2017 with an initial registered capital of 300 million yuan. It increased its capital to 500 million yuan for the first time in 2017. At that time, it was wholly controlled by Beijing Qibu Tianxia Technology Co., Ltd.
On April 29, 2021, the equity of 360 small loan changed, and its wholly-owned shareholder was transformed into Shanghai Qiyu Information Technology Co., Ltd., a wholly-owned subsidiary of Qibu world, and the final actual controller was Zhou Hongyi.
It is reported that the capital increase is more than four months away from the last capital increase of 360 small loans. Statistics show that in September 2021, 360 small loans just completed a round of capital increase, and the registered capital increased from 500 million yuan to 1 billion yuan.
Behind the two consecutive capital increases in four months may be related to the new regulations jointly issued by the CBRC and the central bank at the end of 2020.
In November 2020, the Interim Measures for the management of online microfinance business (Draft for comments) (hereinafter referred to as the Interim Measures) was officially released, setting access thresholds for shareholders, registered capital, business scope, platform qualification and other aspects. At the same time, a number of red lines are also drawn for the risk control system, financing leverage, joint loan and loan investment direction in the business process.
In terms of registered capital, the interim measures require that the registered capital of small loan companies operating online small loan business shall not be less than RMB 1 billion, and shall be one-time paid in monetary capital; 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.
In terms of cross regional business, the transition period is 3 years from the date of implementation of these measures. During the transition period, a small loan company that has not obtained the qualification for the operation of cross provincial administrative region network small loan business shall control the balance and number of cross provincial administrative region network small loan within the stock scale, reduce the decline in an orderly manner and gradually clear it.
At the same time, all localities have also issued corresponding policies. For example, in July 2021, Xiamen and Shanghai successively issued the measures for the supervision and administration of Xiamen small loan companies and the measures for the supervision and administration of Shanghai small loan companies (Exposure Draft), making clear requirements for the registered capital of small loan companies. Among them, Xiamen requires no less than 300 million yuan, Shanghai requires no less than 200 million yuan, and both places stipulate that the registered capital is the paid in monetary capital.
“Although the Interim Measures for online small loans are still in the stage of soliciting opinions, the subsequent strong supervision is a high probability event, and there are certain requirements for capital. The capital increase of 360 small loans twice in four months should be compared with the regulatory requirements and comply with the trend of compliance development in the future.” Zhou Maohua, a macro researcher of the financial market department, told reporters.
It is reported that the Internet platform mainly relies on the consumer finance license and the online small loan license to carry out the loan business. The approval of the consumer finance license slowed down in 2021. Choosing the online small loan license to increase capital to achieve scale expansion has become a realistic path for some giants. Therefore, in the future, the network small loan license will still be an important subject of issuing loans on the Internet platform
several online small loan companies increased their capital to 5 billion yuan
In fact, after the promulgation of the interim measures, the small loan industry also began to be polarized.
On the one hand, some small loan companies that do not meet the standards are accelerating the liquidation. According to the statistical data report of microfinance companies in the third quarter of 2021 issued by the people’s Bank of China, there were 6566 microfinance companies in China by the end of September 2021, and 7118 microfinance companies in China by the end of December 2020.
At the same time, the Internet giant chose to increase the capital of its online small loan companies to take steps towards compliance development.
The reporter inquired about the relevant data and found that at present, there are many online small loan companies with a registered capital of more than 5 billion yuan.
In July 2018, the registered capital of Chongqing duxiaoman microfinance Co., Ltd., a subsidiary of duxiaoman, increased to 7 billion yuan; In October 2019, the registered capital of Chongqing ant small and micro loan Co., Ltd., a subsidiary of ant financial, increased from 8 billion yuan to 12 billion yuan; In April 2020, the registered capital of Chongqing Suning microfinance Co., Ltd., a subsidiary of Suning finance, was increased from 4 billion yuan to 6 billion yuan.
In 2021, four Internet companies increased their capital through online small loans. Among them, in April 2021, the registered capital of Tencent’s Shenzhen TenPay online finance microfinance Co., Ltd. increased from 2.5 billion yuan to 5 billion yuan; In June 2021, the registered capital of Shenzhen Zhongrong microfinance Co., Ltd., a subsidiary of Shenzhen Zhongrong microfinance Co., Ltd., increased from 3 billion yuan to 5 billion yuan; In August 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 December 2021, the registered capital of Chongqing Jingdong Shengji microfinance Co., Ltd., a subsidiary of Jingdong, increased from 3 billion yuan to 5 billion yuan.
In this regard, Su Xiaorui, a senior analyst at Analysys, believes that Internet giants have increased their capital one after another. First, online small loans have the qualification for nationwide exhibition, which is highly matched with the Internet attributes of giants; Secondly, the granting of consumer finance licenses with similar functions but higher cost performance slowed down in 2021. It is an expedient measure for giants to choose capital increase network small loans; In addition, since 2021, the giants have made frequent actions in the financial sector to speed up the pace of making up for weaknesses and building ecology. The loan business occupying an important position in the financial sector is a battleground for the giants. The capital increase also shows the determination of the platform to operate in compliance and steadily expand the business model.
