Stuck in Covid-Induced Hardship, Lufax Loan Portfolio Shrinks for First Time

The online loan facilitator is bearing more credit risk as its use of third parties to insure and guarantee the loans it brokers becomes costlier Key Takeaways: 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% By Warren Yang Lufax Holding Ltd. (LU.US), the largest of China’s online loan facilitators, appears caught between…

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Online Loan Facilitators Enter ‘Risk Management Mode’ as Times Get Tough

Lexin, 360 DigiTech and FinVolution are turning their focus to high-quality borrowers at the expense of revenue growth to shield themselves from growing default risks Key Takeaways: Lexin and 360 DigiTech reported third-quarter revenue and profit declines as they refrained from lending to riskier borrowers and boosted default provisions The results show that fintech loan facilitators are turning cautious to avoid default-related loan losses as China’s economy slows By Warren Yang “Risk management trumps all” appears to be the mantra for Chinese online loan companies these days as China’s economy…

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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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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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Credit, Anyone? China’s Online Loan Platforms Get Stuck as Quality Borrowers Dwindle

Three online loan facilitators reported second-quarter profit declines of varying degrees, as China’s slowing economy forced them to prioritize risk management over revenue growth Key Takeaways: FinVolution’s revenue growth slowed to about 12% in the second quarter from 16% and 32% in the previous two quarters, while its latest quarterly net profit fell about 6% 360 DigiTech and Lexin posted little or no revenue growth for the quarter, as their profits plunged 37% and 80%, respectively, during the period By Warren Yang It’s difficult for any lender to grow its…

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Qudian Chief Turns to Star Power in Company Transformation

Founder and CEO Luo Min finds big success in livestreaming promotion for company’s new line of ready-to-cook meals, as it transitions away from its original online lending business Key Takeaways: Qudian sold nearly 10 million of its new line of ready-to-cook meals during an online promotion hosted by the company’s founder and CEO Company rolled out QD Food in March, and is hoping to achieve significant revenue from the service this year as it scales back its older online lending business By Doug Young CEO + livestreaming = smashing success.…

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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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