On October 14, the Guangzhou Microfinance Industry Association also issued a “Risk Reminder Letter” to its member organizations after several banks issued reminders reminding them that credit funds are strictly prohibited from flowing into the housing market, stock market, etc. According to information, this is the first local microfinance industry association announcement in the country to announce a strict ban on credit funds flowing into the stock market. “All member units should regulate business practices, pay close attention to the use of loans and capital flows of the parties concerned, strictly prohibit illegal inflows of relevant funds into the stock market and other fields, and work together to maintain a good financial order.” The Guangzhou Microfinance Industry Association stated in the letter. However, some people in the small loan industry told the Southern Finance All Media Reporter that the above letter is more indicative for small loan companies, and there will be quite a few difficulties in actual operation. “Banks can't necessarily figure out the flow of capital, let alone small loan companies.” “On the one hand, loan costs for small loan companies are relatively high. Some loans have annualized rates of about 10%. Compared to banks' current consumer loans with relatively low interest rates, borrowing from small loan companies to trade stocks is actually not very attractive to investors; on the other hand, for small loan companies, there is a lack of effective means, such as risk control technology, to monitor the customer's capital flow, and it is also difficult to require small loan company customers to explain the flow of loans.” According to the person in the small loan industry mentioned above.

On October 14, the Guangzhou Microfinance Industry Association also issued a “Risk Reminder Letter” to its member organizations after several banks issued reminders reminding them that credit funds are strictly prohibited from flowing into the housing market, stock market, etc. According to information, this is the first local microfinance industry association announcement in the country to announce a strict ban on credit funds flowing into the stock market. “All member units should regulate business practices, pay close attention to the use of loans and capital flows of the parties concerned, strictly prohibit illegal inflows of relevant funds into the stock market and other fields, and work together to maintain a good financial order.” The Guangzhou Microfinance Industry Association stated in the letter. However, some people in the small loan industry told the Southern Finance All Media Reporter that the above letter is more indicative for small loan companies, and there will be quite a few difficulties in actual operation. “Banks can't necessarily figure out the flow of capital, let alone small loan companies.” “On the one hand, loan costs for small loan companies are relatively high. Some loans have annualized rates of about 10%. Compared to banks' current consumer loans with relatively low interest rates, borrowing from small loan companies to trade stocks is actually not very attractive to investors; on the other hand, for small loan companies, there is a lack of effective means, such as risk control technology, to monitor the customer's capital flow, and it is also difficult to require small loan company customers to explain the flow of loans.” According to the person in the small loan industry mentioned above.