Capital increase activities in the consumer finance industry continued to be intensive by the end of 2025, as two "bank-affiliated" consumer finance companies—Changyin Wuba Consumer Finance and Nanjin Faba Consumer Finance—recently disclosed or implemented capital increase plans in succession.
On the evening of December 15, it was noted that Bank of Changsha announced its intention to inject up to 1.55 billion yuan of its own funds into Hunan Changyin Wuba Consumer Finance. The final amount will be subject to the actual capital contribution approved by regulatory authorities.
"This capital increase can further strengthen Changyin Wuba's capital base, enhance its risk resilience, and create conditions for its sustained and stable operation," Bank of Changsha stated in the announcement.
According to the company's official website, Changyin Wuba Consumer Finance officially commenced operations on January 24, 2017. It is the first licensed consumer finance company in Hunan approved by the National Financial Regulatory Administration (formerly the China Banking Regulatory Commission), jointly established by Bank of Changsha Co., Ltd., Beijing City Wanglin Information Technology Co., Ltd., and Changsha Tongcheng Holdings Co., Ltd.
A review of Changyin Wuba Consumer Finance's capital increase history shows that its capital replenishment rhythm is highly aligned with the regulatory direction of the industry.
Qichacha information indicates that the company's initial registered capital was 300 million yuan when it opened in 2017, and it underwent its first capital increase to 900 million yuan in 2019. In March 2024, the revised "Measures for the Administration of Consumer Finance Companies" was officially released. Changyin Wuba Consumer Finance became the first institution to disclose a capital increase plan and completed the increase in October of the same year, raising its registered capital to 1.124 billion yuan, just meeting the new regulation's 1 billion yuan threshold.
It is noteworthy that Nanjin Faba Consumer Finance also underwent a business registration change on December 12, with its registered capital increasing from 5.215 billion yuan to 6 billion yuan. After this increase, Nanjin Faba Consumer Finance's registered capital ranks 4th among the 31 consumer finance companies.
In the view of industry insiders, the core drivers of the capital increase wave in the consumer finance industry in 2025 stem from the dual pressures of rigid regulatory constraints and industry competition.
The "Measures for the Administration of Consumer Finance Companies," which officially took effect in March 2024, significantly raised the minimum registered capital requirement from 300 million yuan to 1 billion yuan, while also increasing the shareholding ratio requirement for major contributors from 30% to 50%. The "Measures for the Regulatory Rating of Consumer Finance Companies," issued in December 2024, raised the weight of capital management to 15%, placing it on par with corporate governance and consumer rights protection, second only to risk management's 25%, further reinforcing the core status of capital strength in the industry's development.
Under this regulatory guidance, cases of capital increases by consumer finance companies continued to emerge throughout 2025. According to a review, eight institutions, including Ningyin Consumer Finance, Hubei Consumer Finance, Jincheng Consumer Finance, and Xingfu Consumer Finance, have completed or disclosed capital increase measures within the year, exceeding the total number from the previous year.
Looking at the entities increasing capital, many small and medium-sized institutions in the industry are focused on compliance. For instance, four institutions—Weipin Fubon Consumer Finance, CITIC Consumer Finance, Jincheng Consumer Finance, and Xingfu Consumer Finance—have raised their registered capital to 1 billion yuan through capital increases, just meeting the minimum regulatory requirement. Larger consumer finance companies, however, are proactively increasing capital to expand their scale and consolidate their industry position. Most of these increases are led by their major bank-affiliated shareholders, leading to further concentration of control. For example, after Ningyin Consumer Finance's capital increase, the shareholding ratio of its largest shareholder, Bank of Ningbo, rose to 94.17%; Hubei Bank increased its stake in Hubei Consumer Finance to 49.61% through a capital injection; and Bank of Changsha's capital increase plan for Changyin Wuba Consumer Finance shows its shareholding ratio will increase from 56.66% to 74.96% post-increase.
It is noteworthy that as of December 25, five consumer finance companies still have registered capital below 1 billion yuan, including Shengyin Consumer Finance, Jinmeixin Consumer Finance, Mengshang Consumer Finance, Jinshang Consumer Finance, and Beiyin Consumer Finance.
Industry analysts point out that multiple complex factors lie behind these institutions' failure to meet the standard. Some are constrained by their relatively small business scale and poor profitability, making it difficult to replenish capital through retained earnings. Others face practical difficulties, such as challenges in introducing qualified new shareholders or insufficient willingness from existing shareholders to inject more capital, leading to delays in their capital replenishment process.
Looking ahead to 2026, industry insiders believe the wave of capital increases among consumer finance companies will continue. As competition in the consumer finance industry intensifies and the regulatory framework continues to improve, capital strength will gradually become a key indicator for measuring an institution's core competitiveness. Capital operations such as capital increases, share expansions, and equity structure optimization will still be frequent, driving the industry towards a more standardized, healthy, and high-quality development path.