Bank of East Asia sells consumer finance assets to Chinese lender QL Finance for HK$1 billion
Sells subsidiary Credit Gain’s operations in Chongqing and Shenzhen
Bank of East Asia, Hong Kong’s largest independent bank, has sold a package of consumer finance assets to Chinese money lender QL Finance for HK$1.08 billion (US$139 million), as part of an ongoing drive to cut costs and streamline operations.
The assets sold in this latest divestment belong to BEA’s wholly owned subsidiary Credit Gain, the bank announced on Wednesday evening. They include two China-based microfinance lenders, Shenzhen Credit Gain and Chongqing Credit Gain, and Chongqing Dongrong, a business consultancy based in the south western metropolis of Chongqing for a combined HK$665 million.
BEA also sold a portfolio of Credit Gain’s Hong Kong loans to QL Finance for HK$414 million.
A spokeswoman for BEA said that the disposal had followed a review of the bank’s strategic investments.
“Having considered the current business environment and regulatory requirements, we believe that the money lender business will have a greater prospect if it is operated by a money lender operator group,” she said.
