TENCENT(HK:00700) 2 1 Shi Ji Jing Ji Bao Dao·2025-11-25 02:50Core Viewpoint - Tencent's financial subsidiary, WeChat Pay's microloan service, has received approval to increase its registered capital from approximately 10.526 billion yuan to 15 billion yuan, marking a significant capital expansion in response to regulatory requirements and business needs [2][4]. Group 1: Capital Increase Details - The recent capital increase amounts to approximately 4.474 billion yuan, bringing the total registered capital to 15 billion yuan, a 50-fold increase from the initial 300 million yuan since 2020 [2][4]. - Tencent has contributed 4.25 billion yuan through Shenzhen Tencent Network and 224 million yuan through Shenzhen Tencent Computer, resulting in a 95% ownership stake for Tencent Network and 5% for Tencent Computer [4]. - Since 2020, WeChat Pay's microloan service has undergone six capital increases, with the most recent one approved in November 2025 [4]. Group 2: Industry Context - Nearly 30 microloan companies have undertaken capital increases this year, with WeChat Pay's microloan service, ByteDance's Zhongrong Microloan, and Ping An's Jinlian Yuntong Microloan being the top three in terms of registered capital [5]. - As of September 2025, the number of microloan companies in China has decreased to 4,863, down from 5,257 at the end of 2024, indicating a trend of consolidation in the industry [5]. - The regulatory environment has changed, with new rules requiring a minimum of 30% co-funding from commercial banks for online loans, which emphasizes the importance of capital strength for microloan companies [7]. Group 3: Product Comparison - WeChat Pay's microloan service, launched in 2020, has a loan balance of 112.588 billion yuan as of June 2025, with a daily interest rate of 0.04% and an annualized rate of 14.6% [8]. - In contrast, Ant Group's Huabei service has a daily interest rate of 0.05% but offers a maximum interest-free period of 41 days, with approximately 65% of Huabei users not paying any interest in 2024 [8]. - Tencent currently lacks a consumer finance license, which limits its financing channels compared to competitors like Ant Group, which has a consumer finance license allowing for higher leverage and lower financing costs [7][8].