This article only represents the author's own views.
Beijing has once again reminded investors of the type of sudden new regulation it often doles out without warning, which can quickly change the fortunes of financial companies for the worse.
Last Tuesday, China’s Ministry of Public Security and the National Financial Regulatory Administration (NFRA) signaled the start of a new phase in their war on the financial "black and gray" markets. The official rhetoric targets "predatory" brokers and other underworld financial firms that do things like tricking grandmothers into guaranteeing loans for strangers. But legitimate consumer loan platforms like Yiren Digital Ltd. (YRD.US) and Qfin Holdings Inc. (QFIN.US, 3660.HK) are also ending up as collateral damage in the latest dragnet.