Xin Lang Cai Jing·2025-12-29 07:46Core Viewpoint - Kuaishou's financial business is rapidly expanding, as evidenced by the recent increase in registered capital of Kuaishou Microloan from 500 million to 1 billion RMB, indicating a strategic push into the financial sector [1] Group 1: Company Developments - Kuaishou Microloan was established in January 2016 and was previously known as Guangzhou Huanyu Microloan Co., Ltd. [1] - The company underwent a change in ownership, with 100% of its shares transferred to Beijing Yunchi Technology Co., Ltd. in March 2024, followed by a name change to Kuaishou Microloan in April 2024 [1] - Yunchi Technology, a wholly-owned subsidiary of Dajia Internet, has also recently increased its registered capital from 1.255 billion to 2.255 billion RMB [1] Group 2: Financial Business Expansion - Kuaishou's financial services began in 2020, starting with the acquisition of over 50% of EasyLink Payment for nearly 300 million RMB, which allowed Kuaishou to obtain a payment license [3] - In 2024, Kuaishou accelerated its financial business by obtaining a microloan license in March and acquiring 100% of Shanghai Shengda Insurance Brokerage Co., Ltd. in July [3] - Kuaishou's app sees 160 million users weekly engaging with financial content, with a conversion rate for financial ads 19 times higher than average users, yet only 12% of users receive financial-related ads [3] Group 3: Product Offerings - Following the acquisition of the microloan license, Kuaishou launched cash loan products "Kuaishou Monthly Payment" and "Kuaishou Easy Borrow," with the former offering a maximum interest-free period of 37 days and the latter having an annual interest rate ranging from 6.1% to 24% [4] - The minimum registered capital requirement for microloan companies is 1 billion RMB, with Kuaishou Microloan's recent increase still significantly lower than competitors like ByteDance's Zhongrong Microloan at 19 billion RMB and Tencent's WeChat Pay Microloan at 15 billion RMB [4] Group 4: Industry Trends - The microloan industry is experiencing a bifurcation, with several major companies increasing their registered capital while others exit the market due to poor performance [5][6] - As of September 2025, there are 4,863 microloan companies in China, a significant decrease from the peak of 8,910 in 2015 [6] - Stronger companies are increasing capital to meet regulatory requirements, while weaker firms are forced to exit, indicating a trend towards industry consolidation [7]