Microlender China Commercial Credit to boost loans 10 times

China Commercial Credit, the nation's first US-listed microcredit firm, plans to boost its lending capacity almost tenfold in three years through acquisitions and more capital raising.

The lender aims to have a loan book of five billion yuan (HK$6.3 billion), up from about 550 million yuan as of June 30, mainly by buying rivals across the mainland, chief executive Qin Huichun said on Wednesday, without specifying targets.

The company is considering sales of asset-backed securities domestically and bonds abroad to raise capital, Qin said.

Microfinancing has flourished on the mainland since its inception in 2005, as the nation's 42 million smaller businesses missed out on a 4½-year credit binge that mostly benefited government-backed enterprises and projects.

Fewer than 10 per cent of small private enterprises have access to bank loans, estimates Citic Securities, despite accounting for 60 per cent of economic output and 80 per cent of jobs.

"Although banks have increased their lending to small firms in the last few years, the amount is insignificant and the impact is quite limited," Qin said. "Microlenders like us will become the key force to fill the void and there'll be huge potential in serving these borrowers."