Qudian Inc. (NYSE: QD) today announced that it has been informed by Ant Financial that for all transactions effective from November 30, 2017 on the Alibaba (NYSE: BABA) Alipay consumer interface, an effective annualized rate of 24%, covering all interest, fees and charges, will be the maximum rate allowed for credit services for all third-party service providers. This includes transactions for Qudian Inc. on leads generated from Alipay’s dedicated channel for third-party service providers (the “Third-Party Channel”) as well as leads generated from Alipay’s public service window (the “Public Service Window”).
The Company supports this policy change as it promotes a healthy environment for credit services offered in China and is committed to complying with this policy by November 30, 2017. For transactions made through the Company’s mobile applications, the Company will continue to charge a total fee on credit services that translates into an effective annualized rate of 36% or less, in accordance with current PRC laws and regulations on lending activities.
In the third quarter of 2017, a majority of total credit drawdowns were made through the Third-Party Channel or the Public Service Window. The Company has recently begun to implement measures to promote the use of its mobile applications, and has observed an increase in transactions carried out under these mobile applications, where it has the flexibility to price credit services at an annualized rate of up to 36%. The Company’s mobile applications now rank among the top downloaded application under the finance category for major app stores in China. The Company is committed to continuing to implement new strategies to grow its business, evolve to meet market demand and respond to industry developments.
The Company will continue to commit to industry leading best practices in service fees charged, collection and user experience while at the same time embracing changes in the regulatory environment. The Company expects that these best practices will continue to strengthen Qudian’s brand throughout China’s underserved users and attract them to the Company’s platform.