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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Noah Holdings Finds Resurgent Riches in China’s Wealthy

One of the nation’s oldest private wealth managers posts record business in first quarter, but forecasts more modest profit gains for all 2021  Key points: Asset manager Noah Holdings is focusing on higher-margin, affluent customers over more mainstream ones The strategy could position it for stronger growth in the next few years as it emerges as one of the survivors from China’s recent P2P cleanup   By Doug Young Forget the Average Joe and focus on the rich. That’s the message coming in the latest earnings report from Noah Holdings Ltd.…

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LexinFintech Finds Weaker Growth, Better Profits in Business Shift

Key takeaways: LexinFintech is transforming from a direct lender to a middleman that facilitates micro loans between banks and customers The transformation is hurting the company’s revenues due to the new model’s lower fees. But profitability is improving with lower risk levels By Doug Young We’ll start off the new week with a story that could be called, “A Tale of Two Fintechs.” A couple of weeks ago we looked at the story of FinVolution Group (NYSE: FINV), whose stock nearly doubled in a single day after it reported financial…

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Online Lender FinVolution Signals Emergence From Fintech Storm

Company’s shares nearly double on latest quarterly report that shows return to strong growth after a regulatory cleanup over the last two years Two key takeaways: 1) FinVolution’s latest results – and massive rally in its shares – show China’s fintech sector could be poised for a new era of growth after a difficult two-year cleanup. 2) The company’s confidence about the future is reflected in its forecast for 70% loan origination growth this year, and the raising of its dividend by 42%. By Doug Young It’s not often you…

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