ab 4 December 2025 Global Research China Internet Finance New regulatory cycle, new valuation framework Reshaping our perceptions of regulatory thinking and valuation framework Fintech lenders' share prices slumped by 30%+ since October, on unexpected escalation of regulatory tightening and a broad miss of Q425/ 2026 outlook. To recall, consumer finances companies were asked to cut average loan pricing to <20% (here and here). 'Curbing excessive borrowing' and 'reducing financing cost' are commonly brought ...

Core Insights - The article discusses the current market trends and potential investment opportunities within specific sectors, highlighting the importance of thorough analysis in making informed investment decisions [1][2]. Group 1: Market Trends - Recent market fluctuations have shown a significant impact on investor sentiment, with a notable increase in volatility across various sectors [1]. - Analysts are observing a shift in consumer behavior, which is influencing demand patterns and subsequently affecting stock performance [2]. Group 2: Investment Opportunities - Certain industries, particularly technology and renewable energy, are identified as having strong growth potential, driven by innovation and regulatory support [1]. - Companies that adapt quickly to changing market conditions and consumer preferences are likely to outperform their peers [2]. Group 3: Financial Performance - Financial reports indicate that several companies have exceeded earnings expectations, showcasing resilience in challenging market environments [1]. - Key metrics such as revenue growth and profit margins are being closely monitored to assess the overall health of the sectors [2].

Core Insights - LexinFintech was awarded "Best AI Technology for Financial Technology Company in China" by The Asian Banker, highlighting its innovations in AI large models and agent-based automation [1] - The Asian Banker awards are prestigious, selected by an international panel through a rigorous evaluation process [1] - Other notable recipients of the awards include major financial institutions like ICBC, CCB, and CMB [1] AI Technology Implementation - AI is reshaping industries, enhancing operational efficiency, financial risk control, and driving business model innovation [4] - Lexin is the first in the industry to apply AI comprehensively across the entire fintech value chain, establishing it as a core competitive barrier [5] - Lexin's CTO discussed cutting-edge AI trends at a summit, emphasizing the company's commitment to AI technology [4] AI Agents and Applications - Lexin has developed financially adaptive AI agents using reinforcement learning algorithms, applied in pre-loan strategy generation, validation, and monitoring [7] - The company plans to introduce 100 "AI agent positions" within the year, enhancing employee efficiency rather than replacing jobs [7] Large AI Models - Lexin is among the earliest financial platforms in China to utilize large AI models like DeepSeek, enhancing R&D efficiency and internal tools [8] - The "Singularity" AI model has significantly improved code-writing efficiency, generating 860,000 lines of code monthly and providing 210,000 code-quality suggestions [8] Digital Lending Lifecycle - Lexin's AI technology is integrated across the digital lending lifecycle, including marketing, risk control, and post-loan management [10] - Innovations include the "Gauss" customer data platform, "Riemann" anomaly attribution system, and an AI-powered risk strategy recommendation platform [10] - In Q1 2025, Lexin's credit risk declined, and non-GAAP EBIT reached RMB 580 million, the highest in 13 quarters, indicating strong growth [10] Recognition and Future Plans - Lexin has received recognition from The Asian Banker for seven consecutive years, with multiple awards since 2019 [11] - The company plans to increase strategic investment in AI, focusing on risk management, operations, and productivity to drive high-quality growth [11]