Immediate Finance Withdraws IPO Counseling Registration; Why Is Consumer Finance IPO Difficult to Achieve

AI Question · The listing of Mashang Consumer Finance has been halted. What are the industry-wide common challenges?

After five years, this consumer finance company has suspended its listing. On March 16, Beijing Business Daily reporters noted that Mashang Consumer Finance Co., Ltd. (hereinafter referred to as “Mashang Consumer Finance”) has recently withdrawn its guidance filing, officially announcing the halt of its listing plan.

Besides Mashang Consumer Finance, in recent years, other companies like Original Qixin Consumer Finance and Zhaolian Consumer Finance have also signaled intentions to go public, but none have succeeded. Who will earn the title of “First Consumer Finance Stock” remains uncertain, pending industry institutions overcoming various obstacles and confirming that their business models are sustainably viable in the long term.

Mashang Consumer Finance Withdraws IPO Guidance Filing

According to the official website of the China Securities Regulatory Commission, after conducting 21 rounds of guidance work, Mashang Consumer Finance has withdrawn its guidance filing.

Previously, in September 2020, Mashang Consumer Finance received approval from financial regulators, who generally agreed to its initial public offering of A-shares, with a proposed issuance of no more than 1.333 billion shares. In January of the following year, China International Capital Corporation (CICC) and CITIC Securities, as its IPO guidance institutions, first submitted guidance filing registration materials.

Over the subsequent years, the progress of Mashang Consumer Finance’s listing attracted market attention but remained at the guidance filing stage. In January 2026, CICC and CITIC Securities issued the 21st and latest guidance progress report, stating that the main issue still facing Mashang Consumer Finance is that the number of independent directors on its board is less than one-third.

According to disclosed information, Mashang Consumer Finance currently has 10 board members, including Chairman Zhao Guoqing, Director and General Manager Guo Jianni, Director and Deputy General Manager Cao Jingquan, Yin Xiangdong, Dong Yingqiu, Yi Xin, and Wang Yu, plus three independent directors: Xu Liwei, Chen Guanglei, and Ouyang Rihui.

According to the “Guidelines for the Management of Independent Directors of Listed Companies,” independent directors must constitute at least one-third of the board and include at least one accounting professional. Beijing Business Daily found that the 18th guidance progress report disclosed in April 2025 indicated that independent director Deng Gang had resigned during the guidance period, resulting in the proportion of independent directors falling below one-third.

At that time, the two guidance agencies mentioned that the company would promote the election and appointment of new independent directors to meet regulatory requirements before formal application, but until the guidance filing was withdrawn, the new independent directors had not yet taken office.

Chief analyst Wang Pengbo of Broadcom Consulting believes that the halt in Mashang Consumer Finance’s listing reflects the substantial obstacles faced by licensed consumer finance companies in connecting with the capital markets. The five-year guidance period ending in withdrawal suggests that the company may not have met regulatory or market expectations regarding profitability sustainability, asset quality stability, or shareholder compliance. Coupled with recent cautious attitudes toward IPOs of financial enterprises and the profit pressures inherent in consumer finance business models amid declining interest rates and customer base deepening, these factors form the practical barriers to listing.

Senior researcher Su Xiaorui of Suxi Zhiyan states that the withdrawal of guidance filing by Mashang Consumer Finance is related to the regulatory environment faced by licensed financial institutions in recent years. From the market perspective, aside from consumer finance, successful IPOs by small and medium-sized banks and third-party payment companies have been rare, with some companies withdrawing IPO applications or switching to Hong Kong stocks; similarly, the consumer finance industry has been in a period of adjustment, and the withdrawal of guidance filings helps institutions focus on their core businesses and better adapt to current development trends.

“First Consumer Finance Stock” Still Pending

Not only Mashang Consumer Finance, but in recent years, other consumer finance institutions have also expressed intentions to go public, though none have succeeded.

A year before Mashang Consumer Finance was approved to issue A-shares, Original Qixin Consumer Finance submitted a prospectus to the Hong Kong Stock Exchange in July 2019, planning to list in September of the same year. However, after passing the Hong Kong Stock Exchange’s review, its listing process was repeatedly delayed, and in November of that year, the listing plan was officially terminated. In the following years, Original Qixin Consumer Finance experienced ups and downs, and by late 2024, JD.com acquired a 65% stake in the company through a restructuring agreement, leading to its exit from the market.

Additionally, in March 2021, China Merchants Bank announced the launch of research into the listing of Zhaolian Consumer Finance, with plans to submit to the board once the scheme was mature. By July 2023, Zhaolian Consumer Finance completed a shareholding restructuring, sparking speculation that this was a step toward going public. The company responded that there was no clear timetable for listing and that they would proceed based on actual circumstances. To date, no new developments regarding Zhaolian Consumer Finance’s listing have been announced.

Currently, there are 31 licensed consumer finance companies operating nationwide, but none have completed an IPO. The “First Consumer Finance Stock” remains undetermined. Regarding the main reasons for withdrawing guidance filings and the overall obstacles faced by industry institutions in going public, Beijing Business Daily reporters attempted to contact Mashang Consumer Finance but had not received a response as of press time.

Wang Pengbo believes that the lack of successful IPO cases in the consumer finance industry highlights the low recognition of such institutions in the capital markets. The difficulties lie not only in strict regulatory requirements on leverage, funding sources, and risk control but also in whether their business models can be sustainably verified over the long term.

Wang Pengbo suggests that to break through this bottleneck, regulators need to clarify listing review guidelines for licensed consumer finance companies, and companies themselves should shift away from reliance on high interest spreads and rapid scale expansion toward a sustainable path driven by technology, risk pricing capabilities, and compliant operations.

Su Xiaorui states that, given the current situation, these institutions should focus on compliance, strengthen their fundamental business capabilities—especially self-operated capacity—and adapt to trends by completing various compliance tasks during the adjustment period, laying a solid foundation for potential future listing opportunities.

Beijing Business Daily Reporter: Liao Meng