regulatory changes

Gaotu Techedu Inc. (GOTU) will release its Q3 2025 financial results on November 26, 2025, before the U.S. market opens. A conference call will follow, focusing on the performance and strategic outlook, especially the adoption of AI-integrated platforms and the impact of regulatory changes. Focus and attention will be placed on Gaotu’s AI-driven strategy, reflecting the broader trend of technological innovation in the Chinese education sector and the company’s diversification efforts in response to previous regulatory restrictions.

China’s credit card decline began in 2014 as fintech platforms like Alipay disrupted traditional banking. A pivotal 2014 clash between Ant Financial and state-owned banks, including ICBC, led to regulatory shifts and Alipay partnering with China Construction Bank. Fintech services (e.g., Huabei, JD’s Baitiao) replicated credit card features, eroding their dominance. Post-2020 property regulations accelerated declines, with 100 million cards phased out by 2024. Banks now prioritize high-net-worth clients amid rising defaults and acquisition costs. Falling birthrates, fintech’s grip on lower-tier markets, and household savings trends further challenge recovery, echoing Japan’s and South Korea’s credit crises.