Chongqing Bank halts three co-lending products, retains only risk-sharing WeBank microloan

Chongqing Bank has updated its official website with a revised Personal Internet Loan Product Information list, dated September 15, 2026. The updated list marks three products as "discontinued": Meituan's "Living Expenses" (生活费), Meituan's "Business Loan" (生意贷), and JD.com's "Jin Tiao" (金条). The only product retained is "Wei Li Dai" (微粒贷), a joint offering with Shenzhen Qianhai WeBank, which is now explicitly categorized under a "joint funding (non-co-lending)" model.

Industry observers note that this move is unusual. It marks the first instance among city commercial banks to clearly distinguish between co-lending and joint funding models in public disclosures, and to entirely halt co-lending partnerships while retaining only risk-sharing arrangements. Previous adjustments by peers have typically involved a "full withdrawal from partnership loans" or "reducing the number of partner institutions," rather than a business-model-based restructuring.

Product-by-Product Breakdown: Halting Co-Lending, Retaining Risk-Sharing

According to the bank's disclosure, the adjustment involves four partnership-based personal internet loan products. The details of their partner institutions, business models, credit limits, and interest rates are as follows:

| Product | Partner Institution | Business Model | Credit Limit | Interest Rate Cap | | :--- | :--- | :--- | :--- | :--- | | Wei Li Dai | Shenzhen Qianhai WeBank | Joint Funding (Non-Co-Lending) | Up to RMB 200,000 | 21.6% | | Meituan "Living Expenses" | SanKuai XiaoDai, LiangXin JinCheng | Co-Lending / Co-Lending Hybrid | Up to RMB 200,000 | 24% | | Meituan "Business Loan" | SanKuai XiaoDai, LiangXin JinCheng | Co-Lending / Co-Lending Hybrid | Up to RMB 200,000 | 24% | | JD.com "Jin Tiao" | YunHan Information, SuQian ZhaoKe | Pure Co-Lending | Up to RMB 200,000 | 24% |

Key Differences in Business Models

• Wei Li Dai (Joint Funding): Chongqing Bank and WeBank act as joint lenders. They provide funds according to a pre-agreed ratio, collect interest on their respective portions, and share responsibilities for post-loan collection and dispute resolution.
• Meituan Products (Co-Lending/Co-Lending Hybrid): Chongqing Bank provides the funds and is responsible for loan approval and post-loan risk monitoring. SanKuai XiaoDai provides funds and is entrusted with customer acquisition and marketing, while also participating in post-loan management. LiangXin JinCheng is entrusted with customer acquisition, marketing, and collection.
• JD.com "Jin Tiao" (Pure Co-Lending): All funds are provided by Chongqing Bank. YunHan Information is entrusted with customer acquisition and marketing, and participates in post-loan management. SuQian ZhaoKe is responsible for collection.

A notable detail is that the interest rate cap for the three discontinued products is 24%, while the retained Wei Li Dai product has a cap of 21.6%. All products offer differentiated pricing based on customer credit profiles, with interest (including penalty interest) charged according to the loan interest rate. The final terms are subject to the actual display on the loan application page.

The Core Difference: Risk Allocation

Chongqing Bank's choice between co-lending and joint funding models is fundamentally driven by the difference in risk allocation. The industry generally recognizes four common models for internet loan partnerships:

1. Pure Co-Lending: The platform leverages its traffic, scenarios, and user data for customer acquisition, initial screening, and some post-loan services. The bank provides the funds, conducts independent approval, and manages risk independently. In this model, the platform bears virtually no credit risk, and bad debts ultimately remain on the bank's balance sheet. This is often summarized as "the bank provides the money, the platform provides the people."
2. Joint Loan: The bank and a licensed institution (e.g., a small loan company, consumer finance company) jointly provide funds and issue loans according to a pre-agreed ratio. Both parties contribute actual capital.
3. Joint Funding: Both parties share risks and rewards proportionally based on their capital contribution. This model typically requires the partner's contribution to be no less than 30% of a single loan. The bank must still independently complete risk assessment and credit approval.
4. Bank Self-Operated: The bank uses its own channels for customer acquisition, manages risk independently, and provides 100% of the funds, without relying on external partners.

Among these, co-lending was once the dominant model. Industry insiders point out that its long-standing prevalence stems from the complementary capabilities of banks and platforms: banks have capital and licenses but lack high-frequency consumer credit acquisition scenarios, while platforms have traffic, scenarios, and data but lack low-cost funding and lending qualifications. Co-lending allowed both sides to get what they needed, driving rapid industry expansion.

However, the risk allocation difference is fundamental. In the co-lending model, bad debts are primarily borne by the bank, while the platform's profit share is tied to loan volume. This can incentivize a "scale over risk control" approach. In the joint funding model, the partner must contribute real capital and share risks proportionally, aligning both parties' risk appetites and risk control investments. This is seen as more aligned with the regulatory direction of "reinforcing the bank's primary responsibility for independent risk control."

It is important to note that joint funding is not without barriers. Local corporate banks are generally prohibited from conducting internet loans outside their registered jurisdiction. Both parties must also meet regulatory indicators such as capital adequacy, concentration limits for a single partner, and total internet loan volume caps. These conditions make the model difficult for all institutions to universally replicate.

Context: Retail Asset Quality Pressure

Chongqing Bank's decision to adjust its co-lending partnerships may be linked to pressure on its retail asset quality.

According to its 2026 semi-annual report, the bank's overall operations maintained growth:

• Total assets: RMB 1,108.909 billion as of June 30, up 7.27% from the end of last year.
• H1 operating income: RMB 8.486 billion, up 10.79% year-on-year.
• Net profit attributable to shareholders: RMB 3.518 billion, up 10.29% year-on-year.
• Overall NPL ratio: 1.11%, down 0.03 percentage points from the end of last year.

However, the retail segment has contracted and its quality is under pressure:

• Retail loan principal: RMB 88.554 billion as of June 30, a decrease of RMB 8.148 billion (8.43%) from the end of last year.
• Retail loan share of total loans: Fell from 18.28% to 15.27%.
• Retail loan NPL ratio: Rose to 3.32%, up 0.09 percentage points from the end of last year (3.23% at end-2025, 1.98% in 2023).
• Retail loan NPL balance: Approximately RMB 2.94 billion.
• Corporate loan NPL ratio: Only 0.76%.

One Year After the "Co-Lending New Regulations": Self-Operation and Risk Control Retrenchment as the Main Theme

Chongqing Bank's adjustment is more meaningful when viewed against the broader industry backdrop. In October 2025, the Notice on Strengthening the Management of Commercial Banks' Internet Co-Lending Business to Improve the Quality and Efficiency of Financial Services (commonly known as the "Co-Lending New Regulations") took effect. It requires banks' head offices to implement a list-based management system for platform operators and credit enhancement service providers, and to disclose and dynamically update these lists on their official websites. The regulations are now nearly one year old.

Over the past year, several banks have announced the cessation or reduction of internet co-lending partnerships on their official websites:

• Urumqi Bank: Stopped issuing partnership-based personal internet consumer loans (including joint loans and co-lending) from October 1, 2025. The existing business involved 9 platform operators and 8 credit enhancement service providers.
• Longjiang Bank: The only platform operator on its disclosed list is marked as "cooperation ceased."
• Ganzhou Bank: All three institutions on its list are marked as "cooperation ceased."
• Jiaxing Bank, Wenzhou Bank: Announced the cessation of internet loan partnerships.
• Guiyang Bank: Suspended new internet co-lending partnerships.
• Jilin Yilian Bank: Significantly reduced the number of partner institutions.
• Weihai Blue Ocean Bank: 40 institutions on its list were marked as "suspended" as of March 2026.

Unlike some banks that have taken a "one-size-fits-all" approach to exiting partnership loans, Chongqing Bank has retained joint funding partnerships while halting co-lending. This effectively preserves a path that aligns with "shared risk and matched rights and responsibilities."

In recent years, regulators have introduced a series of policies to reinforce the primary responsibility of lending institutions for risk control, and to address issues such as unreasonable pricing mechanisms and inadequate consumer protection. Concurrently, industry self-regulatory organizations are promoting the implementation of specific business standards.

On September 18, the China Internet Finance Association, along with four other industry associations, jointly issued the Self-Regulatory Standards for Transparent Comprehensive Financing Costs in Personal Loan Business. This standard clarifies the operational requirements for transparent disclosure of comprehensive financing costs, aiming to further standardize and clarify personal loan interest and fees.

Wang Pengbo, a senior analyst at Botong Consulting, noted three critical elements of the self-regulatory standards:

1. A clear prohibition on using "daily interest rate" or "monthly fee rate" for conceptual packaging.
2. Reinforcing the primary responsibility of lending institutions, even when business is conducted through internet platforms.
3. Providing standardized disclosure templates for various business scenarios, offering a directly replicable model for the entire industry.

Wang expects the industry cleanup to proceed smoothly, with non-compliant institutions gradually exiting. Once institutions complete their compliance rectification, the industry's operations are expected to enter a new, stable state.

Looking at the trend, the co-lending industry is moving from "broad-based expansion" to "selective screening." Capital and resources are concentrating on leading platforms, while the survival space for smaller and medium-sized platforms is shrinking, a classic "Matthew Effect." As the first city commercial bank to formally distinguish between co-lending and joint funding in its public disclosures, whether Chongqing Bank's approach will be adopted by more peers, and whether it can truly address its shortcomings in self-operation and customer acquisition, remains to be seen. The industry's true transformation may have only just begun, and its future direction warrants close observation.