Lufax’s revenue and profit fell 17% and 67% in the third quarter, respectively, as it became more selective with borrowers to minimize potential loan losses.

The company’s total outstanding loan volume shrunk for the first time since its 2020 IPO, as its credit impairments surged 138%.

For Lufax and its peers, the only way forward may be just to 'lay flat' – a popular expression in China these days for taking a breather – and wait for the hard times to pass.