The new regulations are sorely needed, previously they only covered actual banks and not self proclaimed 'fintech' companies. Ant gets to bankroll its lending

The new regulations are sorely needed, previously they only covered actual banks and not self proclaimed 'fintech' companies. Ant gets to bankroll its lending by packing loans it just made into bundles and sell it as security with yields of 5%-6%, whereas the actual interest on these loans are around 14%-18%. There's no brake on this system and they can lend out practically infinite amount of money and transfer all risks to banks/asset management firms and consumers. There's no chance that Ant can proceed through IPO with this new regulation as the profit structure of the business has fundamentally changed.