Core Viewpoint - WeChat is intensifying its crackdown on loan intermediaries, significantly impacting millions of loan channel intermediaries in China [3][39]. Group 1: Impact on Loan Intermediaries - A recent incident involving a loan intermediary's WeChat account being temporarily suspended highlights the platform's strict enforcement against financial marketing violations [1][3]. - The Beijing University report indicates that there are approximately 1.5 to 2 million credit intermediaries in China, excluding those using various unconventional marketing methods [3]. - The crackdown poses a severe threat to the business model of loan intermediaries, who rely heavily on social media for marketing [3][39]. Group 2: Business Operations of Loan Intermediaries - Loan intermediaries like "Old Wu" have adapted their business models over the years, transitioning from grassroots marketing to establishing companies that collaborate with various financial institutions [7][9]. - The industry is characterized by a multi-tiered channel system, where intermediaries earn commissions from higher-level channels [12][14]. - Despite the controversies surrounding loan intermediaries, many financial institutions still engage in partnerships with them, albeit indirectly [10][18]. Group 3: Regulatory Environment - Recent years have seen a concerted effort by platforms like WeChat and Douyin to regulate financial marketing activities, including the banning of certain loan intermediaries [39][40]. - WeChat has previously penalized over 30,000 public accounts and 2,000 mini-programs for promoting unqualified financial services [43]. - The WeChat Safety Center has issued warnings about fraudulent loan promotions, emphasizing the risks associated with non-compliant loan services [44][46]. Group 4: Challenges Faced by Loan Intermediaries - Loan intermediaries face significant challenges in transitioning to compliant advertising methods, as operating as a formal business entity incurs high costs and complex processes [34][35]. - Many intermediaries are hesitant to invest in formal advertising due to past experiences of poor returns on investment [35]. - The industry is marked by a lack of effective regulation, leading to chaotic competition and potential violations [38].