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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After Ho-Hum Pricing, AMTD Digital Storms Out of the Gate in U.S. Trading Debut

Shares of fintech accelerator backed by Hong Kong billionaire Li Ka-shing more than tripled from their IPO price in their first two trading days Key Takeaways: Hong Kong-based AMTD Digital Raised About $125 million in a New York IPO, becoming the largest New York listing by a Chinese company this year The company, which is backed by Hong Kong billionaire Li Ka-shing, is suffering from slowing revenue growth, but boasts higher margins than other fintech stocks By Warren Yang There are plenty of China fintech stocks out there, though many…

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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 Sees Food for Growth in Prepared Meals, Weighs Exit of Core Lending Business

The former fintech pioneer’s stock fell more than 10% after it announced a potential wind down of its original credit business as well as a new foray into ready-made meal kits Key Takeaways •      Qudian said it has started trial operations for QD Food, which sells ready-to-cook meal kits through a WeChat mini app •      The move comes as company says it may wind down its original credit business due to challenging regulatory environment By Warren Yang Some China fintech companies seem to know no bounds when it comes to…

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FinVolution Emerging as Fintech Lending Leader After Industry Makeover

Direct lender-turned-loan facilitator reported better results for 2021 than two of its peers that also released earnings last week, sparking a 30% jump in its shares Key Takeaways: •      FinVolution, which has transformed into a loan facilitator from a direct lender, reported a 32% rise in fourth quarter revenue despite regulatory headwinds for fintech lenders •      Lexin, which is also switching to a facilitator model but still continues to lend directly, posted a 27% decline in quarterly revenue, as it sacrificed growth for better risk management •      Fourth-quarter revenue at…

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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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FAST NEWS: OneConnect Partners with Central Bank-Backed Fintech

The latest: OneConnect Financial Technology Co. Ltd. (OCFT.US), a financial software affiliate of Ping An Group, announced it has entered a strategic partnership with Chengfang Financial Technology Co. Ltd. Under the tie-up, the pair will work together to address “common pain points in the financial industry, deliver technological innovations, and enhance data processing and governance,” OneConnect said in announcement late on Sunday. Looking up: Chengfang is a fintech company established by the People’s Bank of China to build, operate and maintain the central bank’s backbone network. In China, working with…

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Opaque Nisun’s Cash Problems Exposed With Massive New Share Sale

Online financing company’s stock plunged after it raised funds equaling more than 70% of its market value in a public offering of new shares and warrants Key takeaways: •      Online financing company Nisun raised $77 million by selling new shares and pre-funded warrants at a heavy discount •      The transaction came after the company, which has a weak track record of disclosure, raised previous new funds as it struggled with anemic cash flow By Warren Yang For a listed company, Shanghai-based Nisun International Enterprise Development Group Co. Ltd. (Nasdaq: NISN)…

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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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