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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ZhongAn’s Big-Tech Ties in Focus as Alibaba-linked Ant Trims Stake

Online insurer’s shares tumbled after Ant Group disclosed plan to trim its longtime stake, but later rebounded after Ant affirmed its commitment to their strategic ties Key takeaways: •      Ant Group, one of the three founders of ZhongAn, disclosed last week it trimmed its stake in the digital insurer •      ZhongAn has close business ties to the three parents, especially Ant and its Alibaba affiliate under a platform cooperation agreement By Warren Yang ZhongAn Online P&C Insurance Co. Ltd.’s (6060.HK) ties to Alibaba (BABA.US; 9988.HK), one of its three big-name…

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ZhongAn Subtly Touts Its Investment Chops Without Help of Big-Name Parent

Online insurer’s investment income has grown solidly even as it reduces its reliance on Ping An Insurance to manage its assets Key takeaways: ZhongAn Insurance says it renewed an asset management services agreement with Ping An Insurance, one of its three parents While the cap on fees ZhongAn can pay to Ping An annually was unchanged in the new agreement, the company hasn’t fully utilized the quota in recent years By Warren Yang As ZhongAn Online P&C Insurance Co. Ltd. (6060.HK) matures into a force in its own right, China’s…

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Battered Autohome Sees Light at End of Tunnel

One of China’s oldest online car specialists posts 24% revenue decline in third quarter on reduced industry spending, but sees relief next year Key Takeaways: Leading Chinese online auto company Autohome says its revenue fell 24% in the third quarter, dragged down by a 50% decline in spending by car manufacturers Company sees global auto sector returning to more normal conditions in second half of next year as chip shortages ease By Doug Young The darkest hour is upon us, but light at the end of the tunnel is also…

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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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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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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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