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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Loan Facilitator 360 DigiTech’s Profit Soars, as Investor Focus Elsewhere

Fintech’s first-quarter profit rose by factor of seven on its automation drive, even as company acknowledged recent meeting with top financial regulators    Key points: 360 DigiTech is executing well on its strategy to lower costs through growing automation of its loan facilitating services The company’s shares could remain under pressure until China’s financial regulators announce expected new round of regulations for high-tech loan facilitators By Doug Young It’s hard to focus on your business when there’s a wild tiger in the room and no one knows exactly if and…

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