Qudian CEO's reflections, etc

Today, Luo Min published a blog piece, reflecting on his mishandling of the media and public relations. He acknowledged his immaturity, inexperience and ... arrogance. I love the piece, and rate him 10 out of 10.

Qudian has rolled out a new line of business, selling cars and lending to car buyers, at lightening speed, once again demonstrating its unrivaled execution capabilities. Its earnings in 2018 may be a touch weaker than previously forecast. But who knows: it may surprise the market on the upside. Market expectations of Qudian are very low any way. Above all, it is in full compliance with the new regulations.

** I drank tea recently with the CEO of Paipaidai, Cliff Zhang. He was on top of the new regulations and the company was adapting to them in a structured way. He was calm, radiating confidence.

** Last week, the regulators hosted a seminar in Beijing with some key industry executives and regional regulators. The key takeaway I gleaned from it: The new regulations are indeed an overkill but the regulators are primarily concerned with two issues: the 36% interest-rate cap, and the rough debt-collection tactics exposed by the media. I think the regulators will allow some leeway on the interest rate front when it comes to very short-term lending. Some people suggest that an annual fee or membership fee on the short-term borrowers may be allowed. The bottom line: the regulations may be flexibly implemented.

The sky has not fallen on China's online lending sector.