Bank of Changsha boosts consumer finance arm with capital injection

Bank of Changsha Co., Ltd. plans to inject up to CNY 1.55 billion in self-owned funds into its controlled subsidiary, Hunan Changyin 58 Consumer Finance Co., Ltd., to enhance its capital strength and risk resilience. This capital increase, approved by the bank's board of directors, constitutes a connected transaction and will require approval from a shareholders' meeting and regulatory authorities.

The proposed capital injection, valuing each share at CNY 1.8877, is considered fair and will not harm the bank's interests. Post-increase, Bank of Changsha's stake in Changyin 58 will rise from 56.66% to 74.96%, while Changsha Tongcheng Holdings Co., Ltd.'s share will decrease from 16.91% to 9.77%.

A shareholders' meeting is scheduled for December 31, 2025, to vote on the capital increase, alongside a proposal to issue non-capital financial bonds of up to CNY 22 billion. The bank's independent directors have affirmed that the capital increase adheres to legal and regulatory requirements, ensuring fairness and protecting shareholders' interests.