Question · Q3 2025
Joseph Martelli asked for X Financial's perspective on the regulatory environment heading into early 2026 and sought further details regarding the recent uptick in delinquency rates.
Answer
President Kent Li stated that forecasting future regulations is challenging, but X Financial prioritizes compliance and consumer protection, leading to a moderated loan volume. He acknowledged a natural uptick in delinquencies due to industry and economic factors, expecting a continued climb before stabilization in one to two quarters, prompting stringent credit policies. CFO Frank Fuya Zheng provided specific delinquency figures, noting the 91-180 day rate rose to 3.52% in Q3 2025. Chief Financial Strategy Officer Noah Kauffman elaborated on the macro backdrop's impact, the company's tightened underwriting, and the expectation for credit metrics to normalize over the medium term as older vintages mature.
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