OneConnect Files for Hong Kong Listing, But Customer Diversification Remains Key

Latest results show the fintech services provider’s pool of ‘high-value customers’ increased substantially last year, a positive sign as it plans a dual listing in Hong Kong Key Takeaways: OneConnect said it has filed to make a ‘listing by introduction’ in Hong Kong, meaning it will become traded there but won’t raise any money or issue new shares Provider of digital services to banks reported its number of ‘premium’ customers grew 34% last year, but controlling shareholder Ping An’s contribution to revenue grew to 56% from 52%  By Warren Yang…

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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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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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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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Software Spinoff OneConnect Unable to Cut the Cord from Powerful Parent

Company’s shares have lost a third of their value over the past week since it revealed it still gets two-thirds of its revenue from Ping An-related sources Key Takeaways: More than two-thirds of OneConnect’s revenue comes from its parent Ping An Group and affiliated companies OneConnect may be especially vulnerable in Beijing’s recent crackdown on U.S.-listed Chinese companies due to its access to huge amounts of sensitive financial data By Thomas Zhang In the investment world, 25% revenue growth is generally a positive thing. It’s rarely something to worry about…

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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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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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