Core Viewpoint - The new regulations on lending and small loans intended to curb high-interest online loans have not effectively stopped the emergence of new high-interest lending schemes, such as installment malls and monthly guarantee platforms, which continue to exploit users through hidden fees and exorbitant interest rates [1][21]. Installment Malls - Platforms like "Xiaoxiang Youpin" are using a model of "product installment + platform buyback" to disguise high-interest loans, with annualized interest rates exceeding 146.8% for some users [3][23]. - A specific example includes a gold bracelet priced at 14,029 yuan, where the total repayment amount reached 15,746.02 yuan, resulting in an annualized interest rate of 101.57% when calculated based on the buyback price of gold [4][5]. - Many users are unaware of the actual interest rates due to the lack of clear disclosures, leading to potential violations of consumer rights [29]. Monthly Guarantee Platforms - Monthly guarantee platforms are more straightforward in their approach, charging high guarantee service fees that push annualized interest rates above 400% [9][30]. - For instance, a user borrowed 5,200 yuan and ended up repaying 7,124 yuan, with a significant portion attributed to hidden guarantee fees [9][30]. - These platforms often do not disclose the actual lending institutions or interest rates, leading to confusion and potential exploitation of borrowers [32]. Market Dynamics - The rise of installment malls and monthly guarantee platforms is attributed to a combination of market demand for "subprime" loans and the short-sighted profit motives of the industry [36]. - Following the introduction of new lending regulations, many high-interest lending models have become unsustainable, prompting smaller platforms to innovate ways to bypass regulations [36][37]. - The current high-interest lending practices are seen as a "last hurrah" for the industry, as they are not sustainable in the long term due to high risks and regulatory scrutiny [39]. Recommendations for Regulation - There is a call for stricter enforcement of regulations that require all fees to be included in the total cost of loans, ensuring compliance with the 24% annualized interest rate cap [36][40]. - Recommendations also include the need for platforms to clearly disclose all costs and the identities of funding sources, as well as establishing a cross-departmental enforcement mechanism to combat deceptive practices [40].

Core Viewpoint - The new regulation issued by the National Financial Supervision Administration aims to enhance the management of internet lending services by commercial banks, which is expected to lead to significant changes and differentiation within the lending industry starting from October 1, 2025 [1]. Group 1: Regulatory Changes - The new regulation mandates that the fees for credit enhancement services must be included in the comprehensive financing costs, addressing previous regulatory gaps regarding "dual guarantees" and membership fees [1][2]. - The regulation prohibits credit enhancement service providers from increasing fees under the guise of consulting or advisory services, which previously allowed for inflated effective interest rates exceeding the legal cap of 24% [2][3]. Group 2: Impact on Lending Practices - The regulation aims to ensure that the comprehensive financing costs for borrowers do not exceed the judicial protection limit of 24%, reaffirming that any rates above this threshold will not be protected by law [3][4]. - The "dual guarantee" model, which allowed for excessive fees through multiple service charges, is likely to face scrutiny and may no longer be sustainable under the new rules [5][6]. Group 3: Compliance and Industry Evolution - The regulation emphasizes the responsibility of commercial banks to manage internet lending operations and establish robust management systems, which is expected to enhance compliance within the industry [6][7]. - The introduction of a list-based management system for cooperating lending institutions is anticipated to improve industry compliance and eliminate non-compliant entities, leading to increased market concentration [6][7]. Group 4: Future Outlook - Compliance costs for existing lending institutions are expected to rise due to necessary upgrades in risk control systems and transparency in fee structures, potentially compressing profit margins [7]. - However, a more regulated market may benefit leading institutions in the long run, providing opportunities for growth in inclusive finance [7].