Qudian in Search of a Business as Stock Returns to Penny Territory

The former fintech highflyer was warned a third time about possible delisting this year after its stock fell below $1 on the failure of its latest new foray into the food industry Key Takeways: Qudian was notified by the New York Stock Exchange that it was in violation of listing rules that require its stock price to stay above $1 The warning was its third one this year, and came after the company said it was scaling down a food business it started just six months ago and ceased its…

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‘Stock Advisor’ JF Wealth Defies Market Basics with Ill-Timed IPO Bid

China’s largest online investor content provider has filed a third time for a Hong Kong listing despite some of the weakest market sentiment in years Key Takeaways: Online investment advisor JF Wealth has filed for a Hong Kong IPO, deriving most of its revenue from high-end education and content services The company faces mounting headwinds from rapidly growing sales and marketing costs and increasing refund requests By Emily Chan Basic investment courses advise stock buyers to avoid weak markets like the ones much of the world is seeing right now,…

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FinVolution Picks Up the Pace in Its Global Expansion

The fintech lender announced a major boost in the size of the borrowing facility from its Indonesia partner, though the expanded amount is still small at around $30 million Key Takeaways: FinVolution has announced a major expansion in the size of its borrowing facility from Indonesian partner PT Bank Jago The fintech lender still gets a miniscule part of its business from outside China, with international loans accounting for just 2% of its lending transaction volume By Doug Young Every journey begins with a single step, especially when that first…

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Hony Capital Switches SPAC IPO Focus from U.S. to Hong Kong

Everest Acquisition Corporation, a SPAC launched by leading private equity firm Hony Capital and the state-owned Agricultural Bank of China, has filed for an IPO on the Hong Kong Stock Exchange Key Takeaways: Everest Acquisition Corporation, a SPAC co-funded by Hony Capital and ABCI Capital, applied to list in Hong Kong with the aim of acquiring companies in the healthcare, consumer goods and green sectors In April this year Hony Capital scrapped a bid to list another SPAC, Hony Capital Acquisition, in the U.S. and has turned instead to the…

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UP Fintech Flexes Global Expansion Muscle With NYSE Membership

In its latest move to expand outside China, the online brokerage has become a member of the world’s largest stock exchange  Key Takeaways: UP Fintech’s TradeUP Securities unit has become a member of the New York Stock Exchange, giving its customers direct access to the bourse to enable faster trades at lower costs The company has been expanding outside China to reduce reliance on its home market where it’s subject to a long list of ever-changing regulations  By Warren Yang Online brokerage UP Fintech Holding Ltd.’s (TIGR.US) list of global…

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Fosun International Sells Assets as Short-Term Cash Crunch Looms

Moody’s downgraded the Shanghai-based financial conglomerate last month, saying it could have difficulty repaying its ‘sizable debt’ maturing over the next 12 months Key Takeaways: Fosun has sold down its stake in New China Life, its latest move to raise cash as it faces large debt maturing in the next 12 months The company is also selling down stakes in its Fosun Tourism unit, owner of the Club Med resort chain, and appears to be selling shares in its core Fosun Pharma holding By Doug Young A group of Chinese…

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Lifted by Southeast Asia Growth, Insurer FWD Seeks IPO Safe Landing

Hong Kong tycoon Richard Li’s Asia-focused insurance company, FWD Group, has filed again for an IPO that reportedly aims to raise $1 billion Key Takeaways: FWD has switched its focus from opportunities in China to the growth potential in Southeast Asia as its main IPO selling point for investors The company’s listing was delayed in May this year due to bumpy market conditions, and it is still beset by uncertainty, with sluggish Hong Kong stocks and a likely swing from profit to loss this year By Ken Lo FWD Group…

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Hong Kong SPAC Market Wilts as Global Fever Ebbs

Global investors are becoming less keen on special purpose acquisition companies, clouding prospects for Hong Kong’s own SPAC market launched at the start of this year Key Takeaways: Only three Hong Kong SPACs have listed since the city launched a local program early this year, and all now trade below their listing prices U.S. SPACs have raised $12.5 billion so far this year, less than 10% of what they raised in 2021, as the global SPAC market cools By Ken Lo Blame it on the market. Or perhaps special purpose…

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Cango Adds Used Cars, New Core App as Business Hits Second-Quarter Speed Bump

Company’s revenue takes major Covid hit as it launches a new Haoche app at the center of its ongoing transformation from car financier to car-trading platform operator Key Takeaways: Cango’s revenue fell 69% in the second quarter due to disruptions from China’s strict Covid controls, but it forecast the figure would start to rebound in the current quarter Company added two important pieces to its emerging car-trading business model with the rollout of its Haoche app and launch of a used car trading platform  By Doug Young Talk about hitting…

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