# AI risk models

China’s Consumer-Lending Shakeout: Regulation No.9 Ends the Easy Money Era for Fintechs

China’s Regulation No.9 has triggered rapid restructuring across its consumer-finance and online lending sectors, forcing layoffs, shrinking loan volumes and wiping out valuations of previously high-flying fintechs. By tightening bank oversight, banning disguised borrower fees and demanding in-house risk controls, the rule ends a long era of regulatory arbitrage and favours well-capitalised players and firms with demonstrable, end-to-end risk technology.