Chongqing Rural Commercial Bank issued an announcement today. It turns out China Banking Insurance Regulatory Commission has approved the application of Xiaomi Communications to establish Chongqing Xiaomi Consumer Finance Co., Ltd. in Chongqing.
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The registered capital of Xiaomi Consumer Finance is RMB 1.5 billion ($0.22 billion), of which Xiaomi Communication Technology Co., Ltd. invested 750 million yuan ($108.59 million), a 50% stake, and Chongqing Rural Commercial Bank Co., Ltd. invested 450 million yuan ($65.15 million), a 30% stake.
In addition, Chongqing Jinshan Holdings (Group) Co., Ltd., Chongqing Dashun Electric (Group) Co., Ltd. and Chongqing Jinguan Jielai Hardware & Electrical Market Co., Ltd. invested 150 million yuan ($21.72 million), 147 million yuan ($21.28 million), and 30 million yuan ($4.34 million), respectively.
The business scope of Xiaomi Consumer Finance includes:
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- issuing personal consumer loans,
- accepting deposits from domestic subsidiaries of domestic shareholders and domestic shareholders,
- borrowing from domestic financial institutions,
- issuing financial bonds upon approval,
- domestic interbank lending,
- consulting and agency services related to consumer finance,
- sale of insurance products related to consumer loans,
- and fixed income securities investment business.
This is the second consumer finance company officially approved by the regulatory authorities since 2020. The last one was Everbright Bank’s Beijing Sunshine Consumer Finance Co., Ltd. And the next one was Ping An Consumer Finance Company at the end of November 2019.
Prior to July 2019, the approval of consumer financial company licenses had been suspended for more than 15 months.
P.S. Prior to this, Xiaomi has launched a personal loan service in India aimed at young professionals and millennials. The Chinese smartphone vendor looks to consolidate its presence in the country’s fast-growing internet finance market.