BRIEF: Chairman Tang Ning boosts indirect stake in Yiren Digital
Online lender Yiren Digital Ltd. said on Monday that following changes to the shareholding structure of its parent, the percentage of the company indirectly held by its Chairman Tang Ning rose to 82% from a previous 35.6%.
Yiren Digital is 82% owned by parent CreditEase. Under the restructuring, effective June 5, Tang Ning’s stake in CreditEase rose from a previous 43.4% to 100%, according to Yiren Digital’s announcement.
The changes come as CreditEase is mired in controversy related to 30 billion yuan ($4.43 billion) in wealth management products issued by one of its subsidiaries. CreditEase abruptly suspended both principal and interest distributions for the products late last month under orders from Chinese regulators, according to media reports at that time. No specific reason was given for the regulatory action.
Yiren Digital issued a statement saying CreditEase’s trouble was unrelated to its own day-to-day operations, but its stock still fell 25% over four trading days after the original media reports. The stock rose 4.2% in Monday after-hours trading in New York after the latest announcement, which was released after market close. But even at that level, the stock is still down about 40% from its levels in mid-May.
By Doug Young
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