Listed Loan Facilitators Post Weaker Q2 Earnings as Delinquencies Improve

Listed loan facilitation firms in China reported weaker second-quarter results, with revenue and net profit continuing to fall and JIayin Technology and Lufax posting losses, according to Jiemian News. JIayin Technology reported a net loss of 184 million yuan, while Qifu Technology, Xinye Technology, Lexin and Xiaoying Technology also posted sharply lower profit than a year earlier. The downturn came after tighter funding supply and new rules from China's National Financial Regulatory Administration took effect on October 1, 2025, requiring related fees to be included in total financing costs and aligning business practices with a 24% annualized cap. Jiemian News reported that Lexin said a risk event involving some peers in late June tightened industry-wide funding supply and hurt market sentiment and loan volume. Asset quality improved for some firms. Of seven listed loan facilitators that disclosed 90-day-plus delinquency rates, four saw the metric fall from the first quarter. As of June 30, 2026, delinquency rates were 2.1% for Xinye Technology, 9.09% for Xiaoying Technology, 2.83% for Qifu Technology and 2.21% for JIayin Technology, while Lexin, Lufax and Weijinsuo reported 3.6%, 3.7% and 8.64%, respectively. Several companies struck a cautious tone for the third quarter. Xinye Technology CEO Li Tiezheng said the company would remain prudent in credit issuance rather than chase riskier volume. Qifu Technology said it expected third-quarter net profit and adjusted net profit to fall 67% to 73% year on year, while Lexin said total loan originations in the third quarter were likely to drop sharply from the second quarter and that it could post a net loss.