Qudian Finds New Business Model in Buying Back Shares

Online lender announces plan to buy back up to $200 million worth of its shares, sending its stock up by as much as 60% Key Takeaways: Qudian has announced a $200 million share buyback plan, extending a recent series of buying of its own stock Aggressive share purchasing comes as Qudian dramatically scales back its original consumer lending business and searches for a new business model By Doug Young It seems that Qudian Inc. (QD.US), the former fintech pioneer that is now considering dumping its original consumer lending business, has…

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China’s Economic Slump Leaves Internet Lenders Battling Bad Loans

360 DigiTech, FinVolution and Lexin all reported first-quarter net profit declines and growing delinquent loans, amid a grim outlook for China’s economy Key takeaways: •      360 DigiTech and FinVolution posted 12% and 9% profit declines in the first quarter, respectively, while Lexin’s profit plunged by 89% •      Delinquent loans rose for all three lending platforms, forcing them to increase loan-loss provisions By Warren Yang The fortunes of consumer lenders are a good proxy for the state of an economy. When times get rough, individuals with shaky income are often among…

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Qudian Headed for Wall Street Exit Door? Not So Fast, Perhaps

Former fintech highflyer’s average share price falls below $1 for 30 days, even as analyst sentiment shows sudden positive shift Key takeaways: Qudian’s stock has closed at an average price of less than $1 over the last 30 trading days, putting it out of compliance with New York Stock Exchange listing rules Analysts have suddenly become more positive on the company, with six rating it a ‘buy’ or ‘strong buy’ in February after it received mostly ‘hold’ ratings in previous two months By Doug Young We’ll end this first trading…

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New Energy Lands as Hottest Category Among Chinese Concept Stocks in 2021 – Bamboo Works Special Report

Investors kept a close look at China’s solar and wind power stocks last year, but were least interested in the hobbled education sector By Bamboo Works team Chinese concept stocks experienced unprecedented challenges in the Year of the Ox. The small and mid-sized companies covered by Bamboo Works were no exception, also coming under intense pressure. Looking past their stock prices and financial reports, how did these companies perform in terms of media and investor attention? Which companies stood out despite all the pressures? Our special report highlights such trends…

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Qudian Shares Sink Into Danger Zone as It Fails to Find New Footing

Embattled microlender’s shares dropped below $1 to all-time lows as its loan business shrank and a new child education club struggled Key takeaways: Qudian’s revenues slid 59% and the company swung to a loss in the third quarter, spooking investors and sending its shares to penny-stock territory Company could be forced to do a reverse share split or delist if its stock trades below $1 for an extended period By Mia Shanley Bruised and battered shareholders of Qudian Inc. (NYSE: QD) took another beating this week after the Chinese microlender…

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FinVolution Solidifies New Growth Path After Weathering Fintech Clampdown

Company’s latest quarterly results show it’s bouncing back strongly from regulatory overhaul for former P2P lenders Key takeaways: •      FinVolution’s user base increased sharply in the third quarter, leading to 41% revenue growth •      The company posted only a small net profit gain because of swelling costs By Warren Yang FinVolution Group (FINV.US) is making respectable strides as it rises from the ashes of its former life as a peer-to-peer (P2P) lender. The company is spending heavily to grow under a new business model as an online loan facilitator, following…

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360 DigiTech Earns ‘Survivor’ Title After Latest Regulatory Wave

After transforming from direct lender to loan facilitator, the fintech led by ‘internet bad boy’ Zhou Hongyi has found a way forward in the face of regulatory headwinds Key Takeaways: 360 DigiTech has reported strong third-quarter results, with both turnover and net income posting solid gains Investment banks are optimistic on the company, with Morgan Stanley raising its target price to $54 – nearly double the current share price By Fai Pui Following Beijing’s determination to clean up China’s fintech sector, “survival” has become the mantra for all companies in…

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Lexin Slows Down Lending as Latest Regulatory Wave Rocks Fintechs

Company scales back 2021 loan facilitation goals amid latest talk that Beijing could sharply lower interest rate cap for personal loans Key Takeaways: •      LexinFintech is voluntarily slowing down its lending activity while it awaits the next major move in China’s rapidly evolving regulatory environment •      Company’s shares tumbled after its latest quarterly results announcement, despite reporting 10% revenue growth and 88% profit growth By Thomas Zhang Solid growth is the gold standard for investors, even though such growth may not guarantee a stock will rise. That lesson is on…

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360 DigiTech’s Lending App Returns to China Stores, But Investors Unimpressed

Fintech company’s shares jump after announcement of return of its Jietiao app to Chinese app stores, but later give back all those gains and more Key Takeaways: Fintech loan facilitator 360 DigiTech says its main app was restored to Chinese app stores after its earlier removal for data collection violations Company’s stock initially rallied after news, but failed to recover to pre-crisis levels and later gave back all the gains amid a flood of shareholder lawsuits By Thomas Zhang Investors in Chinese fintech companies have had a few rollercoaster months…

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Fintech Qudian’s Profits Boom, Loans Shrink as It Bets on Direct Lending Model

Company posts fourth consecutive quarterly profit, but its shares remain significantly undervalued compared with peers Key points: Former fintech star Qudian has given investors cause for cheer with its fourth consecutive quarterly profit Microlender must demonstrate it can resume expansion of its core lending business following years-long regulatory crackdown By Ben Livesey Qudian Inc. (NYSE: QD), once the darling of the Chinese fintech industry, has provided some respite for long-suffering investors in its first-quarter results, with confident comments on its loan quality and optimism that implies it may be seeing…

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