FINANCE

China’s Crackdown on High-Cost Lending Draws In U.S.-Listed Chinese Firms

Published: Dec. 16, 2025 2:04 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

China’s financial regulators are tightening controls on high-cost consumer lending, a move that could reshape business models across the country’s fast-growing consumer lending sector, including U.S.-listed Chinese lending platforms, Caixin has learned.

The move underscores Beijing’s effort to contain household debt risks without undermining consumer spending, which policymakers continue to promote as a pillar of economic recovery.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

Chinese regulators are tightening controls on high-cost consumer lending, implementing caps: below 12% (encouraged), 12–24% (monitored), above 24% (prohibited), with new rules effective after Q1 2026.
U.S.-listed Chinese platforms Jiayin Group and X Financial are under scrutiny for high-interest lending and evasion of interest caps.
China’s 31 licensed consumer finance firms had 1.35 trillion yuan in outstanding loans by end-2024, up nearly 17% year-on-year.

AI generated, for reference only

Who’s Who

Jiayin Group Inc.: Jiayin Group Inc., a Nasdaq-listed Chinese lending platform, has had its loan facilitation platforms cited in a regulatory report. The concern raised was the suspected use of guarantee fees and other charges to disguise high-interest lending. This is part of a broader regulatory crackdown on high-cost consumer lending in China.

X Financial: **X Financial** (小赢科技), a New York-listed company, was cited in a regulatory report for offering loans with borrowing costs approaching 36%. This highlights the Chinese regulators' efforts to curb high-cost consumer lending and address irregularities in the fast-growing consumer finance sector.

AI generated, for reference only

What Happened When

By the end of 2024：: China’s 31 licensed consumer finance companies had outstanding loans of about 1.35 trillion yuan, up nearly 17% year-on-year.

In 2025：: Regulatory guidance has set a cap of 24% for total interest and fees on consumer finance company loans, and requires the average comprehensive financing cost on new lending not to exceed 20%.

Before the end of 2025：: China’s financial regulators are expected to release interest rate management rules for microloan companies, introducing the 'two lines, three zones' system.

AI generated, for reference only