Shanghai-listed Bank of Shanghai announced in a disclosure file on November 25 that it has received approval from China Banking Regulatory Commission (CBRC) to establish Shanghai ShangCheng Consumer Finance.
The disclosure file showed that ShangCheng has registered capital of RMB 1 billion. Among other founding investors of ShangCheng is Shanghai-based online travel company Ctrip.
Ctrip has dipped in financial products in various ways – it launched prepaid gift card XieChengBao in 2013, rolled out share prices-linked ChengZhangBao in 2014, and sells insurance for travel, accident, health and property.
While Bank of Shanghai has the finance expertise, Ctrip can contribute by providing online users, user data bases and insights on travel consumption patterns. Other than Ctrip, many Chinese OTAs such as Qunar, TongCheng and LvMaMa are also involved in internet finance business. (Translated by Jerry)
