Ant group is more clearly telling consumers which credit loans come from ants and which credit comes from financial institutions cooperating with ants to meet the requirements of regulatory compliance. On Monday (November 8), when ant group changed its name to "credit loan" on the "borrowing" page of some users, it said that they were isolating the "borrowing" brand. "Borrow chant" and "flower chant" will be transferred to ant consumer finance company newly established in June this year. In the future, only installment payment services or credit loans provided by ant consumer finance will be marked with "flower chant" or "borrow chant". Loans funded by banks and other financial institutions but with the help of ant group to provide data information will become "credit loans". The adjustment is part of a package of rectification requirements put forward by the central bank to ants in April this year. At that time, the central bank asked ants to "return to the source of payment". In addition to "borrowing" and "Hua Bai" in the Consumer Finance Companies, they also broke off the "improper connection" of other financial products such as Alipay and "Hua Bai" and "Bai Bai". This move not only made the bank go to the front of the stage, but also made the ant lose the ability to lend 100 yuan with the principal of 2 yuan in the past. It became that it had to have a minimum of 10 yuan to lend 100 yuan, and the difficulty of lending increased fourfold. This is the regulatory limit of ten times the leverage ratio of consumer finance companies. If ants and financial institutions lend together, suppose they still lend 100 yuan. According to the latest new Internet loan regulations, ants should invest at least 30 yuan. In addition, ants should also meet the regulatory provisions that the capital is greater than 10% of the credit balance. In "when ants become elephants: Why did the world's largest IPO suddenly stop?" we explained in detail how ant group issued 300 billion yuan of loans with only 3 billion capital at its peak. At the end of the first half of 2020, the total loan balance of ant "flower chant" and "borrow chant" was 1.7 trillion, and most of the funds were provided by traditional financial institutions such as commercial banks. With the regulatory compliance requirements for the core business of ant group comprehensively improved in the most open and dramatic way, the difficulty of ant lending has greatly increased. The original lucrative business has become unprofitable and risky. In the second quarter of this year, their net profit decreased by about 30% year-on-year. The imagination space of valuation has also shrunk by 89%. (Xinhua News Agency)