China’s major internet platforms are cautiously reviving their consumer lending businesses. According to industry sources, companies interpret recent government measures as a signal that regulators are easing a multi-year crackdown on the sector.
This strategic shift comes as Beijing seeks to stimulate weak domestic consumption amid economic challenges.
The Chinese government began a stringent crackdown on “disorderly expansion” in the fintech sector in 2020. This campaign famously halted the IPO of Ant Group and imposed heavy restructuring orders on major platforms.
However, the regulatory environment now appears to be softening. In a significant move, Beijing has recently named Ant and Tencent-backed WeBank as eligible lenders for a new consumer loan interest subsidy program.
China's internet platforms are quietly reviving consumer lending, taking Beijing's push to make household borrowing cheaper as a signal that regulators may be easing a years-long crackdown on the sector, four industry sources said. More here: https://t.co/r8naZPOWAG
— Reuters Business (@ReutersBiz) November 10, 2025“The regulatory landscape has become more accommodative,” stated one anonymous industry source. “With the current economic situation being challenging, the economy needs to rely on large internet finance platforms.”
This new stability positions firms like Ant, Meituan, and ByteDance for faster growth. UBS analysts project online lending to rise 7.6% in 2025, with sector profits expected to surge nearly 10% this year.
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Despite this optimistic outlook, significant risks remain. Subdued income growth and a weak job market are pushing consumer loan defaults higher.
Analysts caution that regulators will remain vigilant. “Make no mistake, the regulators still don’t want any more risks,” a source at a top platform confirmed, highlighting the delicate balance between stimulating the economy and controlling financial vulnerability.
