TENCENT(US:TCEHY) Xin Lang Cai Jing·2025-11-21 12:32Core Viewpoint - The approval for Shenzhen's Caifutong Microloan Company to increase its registered capital to 15 billion RMB highlights the competitive landscape in the microloan market, where major players like ByteDance, Tencent, and Ping An are strengthening their capital positions while smaller players are also enhancing their capabilities to prepare for future business expansion [1][2][4]. Company Summary - Caifutong Microloan has received approval to raise its registered capital from 10.5263158 billion RMB to 15 billion RMB, with an additional capital of 4.4736842 billion RMB contributed mainly by Tencent [2][4]. - This marks the sixth capital increase for Caifutong Microloan since 2020, positioning it as the second-largest player in the industry, following ByteDance's Zhongrong Microloan with 19 billion RMB [4]. - The company, established in October 2013, provides credit services for WeChat's consumer loan product "WeChat Fenfu," which allows users to make purchases across various scenarios [4][5]. Industry Summary - The microloan sector is witnessing a trend where major players are solidifying their market positions through significant capital increases, with ByteDance, Tencent, and Ping An leading the way [7][8]. - As of September 30, 2025, the outstanding balance of consumer finance loans for Lufax Holdings was 58.9 billion RMB, reflecting a year-on-year growth of 26.7% [8]. - The overall number of microloan companies in China has decreased from 5,500 at the end of 2023 to 4,863 by the end of September 2025, indicating a consolidation trend in the industry [9].