Exclusive: JD.com’s Fintech Arm to Buy Troubled Consumer Lending Firm, Sources Say
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The fintech arm of internet giant JD.com Inc. is set to buy Home Credit Consumer Finance Co. Ltd., China’s first wholly foreign-owned consumer finance company, sources with knowledge of the matter told Caixin.
The government of Tianjin — where the troubled consumer finance firm is based — is supporting the deal, which is pending approval from the National Financial Regulatory Administration, according to the sources.

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- JD.com’s fintech arm plans to acquire Home Credit Consumer Finance, needing approval from the National Financial Regulatory Administration.
- Home Credit faced significant financial issues, including an 88.1% net profit drop in 2020 and selling nonperforming loans at discounts.
- ByteDance showed interest but the deal failed due to the plan to relocate the company, which Tianjin officials opposed.
- Jingdong Technology Holding Co. Ltd.
- Jingdong Technology Holding Co. Ltd. is the fintech arm of JD.com Inc., involved in payments, microloans, factoring, and fund sales. It seeks to acquire Home Credit Consumer Finance Co. Ltd., aiming to secure a consumer finance license, thereby filling a gap in its financial services portfolio and boosting its competitiveness against rivals like Ant Group Co. Ltd. The acquisition is pending approval from the National Financial Regulatory Administration.
- China Foreign Economy and Trade Trust Co. Ltd.
- China Foreign Economy and Trade Trust Co. Ltd. is a state-backed trust firm that has been involved in financing by accepting a 67% stake in Home Credit Consumer Finance pledged in October, valued at 4.7 billion yuan. This trust firm's involvement is part of the debt restructuring efforts organized to assist the troubled financial company.
- Bank of Tianjin Co. Ltd.
- Bank of Tianjin Co. Ltd. is a financial institution that has been involved in the debt restructuring of Home Credit Consumer Finance. The bank holds pledged shares of Home Credit Consumer Finance, amounting to a 33% stake, initially pledged in January and renewed in July.
- PPF Group NV
- PPF Group NV, based in the Czech Republic, owns Home Credit. Jiří Šmejc is its CEO. The group has been in discussions to sell its China operations and had pledged shares of Home Credit Consumer Finance to raise financing. The parent company has been working towards offloading the unit after regulatory processes.
- Home Credit Consumer Finance Co. Ltd.
- Home Credit Consumer Finance Co. Ltd., established in 2010, was once a leading player in China's consumer finance sector but struggled with the shift to online lending and financial difficulties. It posted an 88.1% drop in net profit for 2020, sold nonperforming loans at discounts, and underwent debt restructuring. Its shares were pledged to raise financing, and its parent company, Home Credit NV, aimed to sell its China operations.
- ByteDance Ltd.
- ByteDance Ltd., owner of TikTok, had expressed interest in acquiring Home Credit Consumer Finance to expand its operations with a consumer finance license. ByteDance currently holds an online microloan license but faced challenges in the deal due to Tianjin officials' disapproval of relocating the company to Shenzhen.
- 2010:
- Home Credit Consumer Finance was set up.
- 2020:
- Home Credit Consumer Finance revealed an 88.1% year-on-year slump in net profit.
- October 2023:
- A 67% stake in Home Credit Consumer Finance worth 4.7 billion yuan was pledged to China Foreign Economy and Trade Trust Co. Ltd.
- January 2024:
- The remainder of Home Credit Consumer Finance's stake was pledged to Bank of Tianjin Co. Ltd.
- By the end of June 2024:
- China had 31 consumer finance companies.
- July 2024:
- The pledge deal with Bank of Tianjin Co. Ltd. was renewed.
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