Ant Financial has always been a company that has attracted much attention in China, and its Huabei and Borrowbei have been exposed for the first time, and they are still illegal operations, and they do not need to be added to the trouble in the follow-up.

Many reporters flocked to the front, almost disrupting Ant Financial's normal business.

At the same time, the more media outlets pay more attention online, the more difficult it is for Ant Financial to explain.

After all, they were indeed suspected of violating the rules, but the original evil results came too quickly.

A group of reporters from Shentong also approached the director of Shancheng Financial Office, who made it clear that he had never approved Ant Financial's nationwide lending.

Not only Ant Financial, but also Shen Lang stabbed him like this, and the cash loan turmoil in almost the whole country has become more and more intense.

Many microfinance companies are eager to tear up this exposer, and everyone knows this kind of thing.

Fortunately now, the news of excessive leverage is coming one after another.

In the past, local governments did not pay much attention to it, and many companies' leverage ratios exceeded local permits, which was commonplace.

Similar to Ant Financial, the leverage ratio is as high as 100 times!

This is simply an appalling figure, something that is simply impossible abroad has appeared so blatantly at home.

In the face of all netizens' doubts, Ant Financial could only helplessly say that there was indeed a suspicion of illegal operations in the past.

The most obvious is that Ant Financial has silently withdrawn its plan to issue a $5 billion ABS product in the securities market.

Money is needed for lending, and Alipay's Huabei and Borrower rely on ABS to obtain funds for lending.

Specifically, when an individual buys something in installments with Huabei, he actually owes Alipay a sum of money, and pays back the money and interest every month.

Alipay packages such debts into ABS (asset-backed securities) and sells them to investors, and investors get monthly interest income, which is similar to buying wealth management products.

There is an interest rate difference, Huabei installment users actually pay an annualized interest rate of 14-15% to Alipay, while Alipay sells ABS interest at 6-7%.

Removing the 1% bad debt loss, Alipay can get 6-8% of the interest difference in the installment.

And after the ABS is sold, Alipay can immediately recover the loan principal and continue to lend to more users.

Yu'e Bao has no room for interest differentials, and it can't take money to reinvest, so there is not much profit.

But Alipay's lending business on this basis is lucrative.

Not only Ant Financial is doing this, but also financial companies such as JD.com and Xiaomi are doing this.

It's just that the supervision of the national team's cash loans was not strict enough in the past.

If Shen Lang hadn't broken the incident, Ant Financial and other financial companies would have been able to make money for a few more months.

But now that the incident has been exposed, the originally unregulated cash loan has instantly become a hot topic for everyone.

Many lending companies with a registered capital of only tens of millions of dollars have leveraged as much as 30 or 40 times.

More and more insider information has been exposed, and even the state has urgently set up a project team to discuss the disposal of cash loans.

As for Ant Financial, he immediately formed a team and was personally taken into Beijing by Ma Jun.

With such a big basket, Ant Financial will definitely not be able to pass the test smoothly.

Being stared at by so many people, Ant Financial has to lose at least a lot of money before it can be said.

Otherwise, how can the majesty of the state be reflected?

Shen Lang simply spent a little money, and made Ant Financial, which was valued at tens of billions of dollars, a mess.

The local financial offices obviously felt that the situation was not right, and investigated the microfinance companies in various places.

But the more you investigate, the more alarmed you become, basically more than eighty percent of the companies have illegal operations.

The funds they lend mainly come from the sale of ABS to earn interest margins.

It's just that the bad debt rate of these small and medium-sized companies is too high, and it can't compare to Ant Financial.

In the heated expectations of the people, the state's handling measures were immediately introduced.

First of all, the local financial offices were ordered to strictly supervise and strictly implement deleveraging.

Illegal operations like Ant Financial are absolutely not allowed to happen again, and Ant Financial's leverage ratio is as high as 100 times, and it has been criticized by the state.

In view of Ant Financial's good attitude in admitting mistakes, Huabei and borrowing businesses were suspended for three months, and lenders were not allowed to exceed Shancheng.

As soon as the punishment measures came out, the interior of Ant Financial exploded instantly.

This is simply the life of Ant Financial, which made money last year and pointed to the consumer finance business.

Now that Huabei and borrowing have been stopped, a lot of profits have almost been taken out of Ant Financial's mouth.

Ant Financial also held a press conference in a timely manner to apologize to the society and say that Ant Financial accepts rectification.

And will immediately suspend the lending of users outside the mountain city, and hope that the majority of users will understand and cooperate.

There is a lot of news on the Internet about the cool of Ant Financial, and many other financial offices in various places have also begun to rectify the situation.

For a time, the national microfinance companies were miserable.

In the past, the financial offices in various localities could turn a blind eye, but now that the state has issued a new policy, how dare they do that.

All the violating companies should basically be seized and recovered.

In short, it is not allowed to over-leverage, and the former microfinance companies are no longer in good old days.

It is simple to continue to maintain this scale of lending, and that is to increase the registered capital.

But that's simply not realistic, and even Ant Financial can't do it.

Ant Financial immediately increased the registered capital of the two companies, which are responsible for Huabei and Baobei, from 3.8 billion yuan to 12 billion yuan.

But compared with the scale of nearly 300 billion yuan that Ant Financial has lent outside, it is only a drop in the bucket.

Ant Financial has withdrawn the permissions of many users outside the province in batches, causing dissatisfaction among many users.

But Ant Financial could only apologize and said that it was actively raising solutions.

The most realistic thing for Ant Financial is to obtain a consumer finance license, which can maintain a satisfactory profit every year according to the maximum leverage ratio of 13 times.

However, a consumer finance license is simply hard to come by, and it is firmly in the hands of city commercial banks and other large enterprises in various places.

Consumer finance makes more money, who will be willing to give up benefits?

Moreover, Ant Financial is so large that occupying a little stake is simply not enough for their appetite.

Ant Financial and other loan companies had to give up their users, and naturally Aifubao's launch of Langbei was welcomed.

Tianxin Nanyue Consumer Finance Company, with a registered capital of 2 billion yuan, can lend up to 26 billion yuan.

And the most important thing is that Aifubao's Langbei business can lend money across the country openly.

This is the greatest use of a consumer finance license!

Many of Ant Financial's lost users switched to Aifubao, which took over Ant Financial's lost users and lending market.

Even though he knew that this would be a huge loss, Ant Financial had to do it.

From the previous Yu'e Bao to the current Huabei and Borrow.

Ant Financial can only slowly get used to this kind of hard time, but if it loses billions of profits, no one will be reluctant to change it.

。 Nine Heavenly God Emperors