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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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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OneConnect’s New Win in Promising Indonesian Market Fails to Impress Investors

Technology as-a-service provider’s shares dropped more than 3% on the day it announced a new business contract with PT Bank Mayapada Key takeaways: •      OneConnect signs new partnership to assist in the digitalization of Indonesia’s PT Bank Payapada •      Finding customers unrelated to OneConnect’s de facto parent Ping An is crucial for it to reduce the risk of relying too heavily on one customer By Warren Yang The misery never seems to end for investors in OneConnect Financial Technology Co. Ltd. (OCFT.US). Its shares keep sagging even when the company…

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FinVolution Tests Regulatory Tolerance With First Asset-Backed Securities Issue

Online loan facilitator issues 200 million yuan worth of ABS months after Ant Group scrapped plan for much larger similar offering Key Takeaways: •      Online loan facilitator FinVolution has issued its first batch of 200 million yuan worth of asset-backed securities as a new form of fundraising tool •      Move comes four months after the larger Ant Group canceled a much larger ABS sale totaling 18 billion yuan By Warren Yang Online loan facilitator FinVolution Group (FINV.US) is undergoing its own low-key revolution in China’s fintech realm, quietly adding asset…

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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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Investors Cheer ZhongAn’s Insurance Milestone. But Only Briefly

Online insurer backed by Alibaba, Tencent and Ping An posts first-ever profit for its underwriting business in first half of 2021 Key takeaways: •   Online-only insurer ZhongAn made a profit from underwriting insurance for the first time in the first half of 2021, helping its net profit jump 54% •   Company’s shares still trade far below their IPO price, underscoring soured investor sentiment after years of losses By Warren Yang It’s been a long time coming for ZhongAn Online P&C Insurance Co. Ltd. (6060.HK), the online insurer that made a splash in…

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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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