Waterdrop Stock Splashes to New Depths in Summer of Regulatory Cleanups

Company’s shares are down 22% since release of its latest results showed a swing back to an operating loss as marketing costs soared Key Takeaways: •      Waterdrop posted healthy gains in revenue and paying customers in the second quarter, but swung back to an operating loss as sales and marketing costs soared •      Company’s shares are down more than 75% since their April IPO due to a combination of widening losses and regulatory concerns By Thomas Zhang Nobody wants to see their investment evaporate more than 75% in just four…

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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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Online Insurance Broker Waterdrop Makes Splash, Then Crash, in New York IPO

Company raises $360 million after pricing shares at the top of their range, only to see stock tank nearly 20% in trading debut Key points: Waterdrop’s position as a middleman insurance broker should help protect it from regulatory risk in China’s sensitive financial services sector The company’s strong IPO pricing, followed by a sharp selloff in its trading debut, reflect investor indecision about its growth prospects  By Doug Young Middlemen are creatures of little or no respect, often seen as parasites that profit from a gap between businesses and the…

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