FAST NEWS: Qudian Regains Compliance With New York Listing Rules

The latest: Online lender Qudian Inc. (QD.US) said on Thursday it has regained compliance with New York Stock Exchange listing rules, after its average closing price for the last 30 trading days rose above the $1 mark. The price had previously traded below that level on a similar basis, leading the company to warn in February it was in danger of delisting. Looking Up: The return to compliance means Qudian won’t need to take other steps to avoid delisting. The most typical step companies use in such situations is a…

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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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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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Xiaobai Maimai Eyes Cancer Treatment as E-Commerce Pivot Sputters

Former P2P lender’s stock soared up to tenfold after announcement of latest shift, but later gave up much of the gains Key Takeaways: Xiaobai Maimai, the former P2P lender known as Hexindai, is making a radical move into cancer treatment in the U.S. The shift comes after the company struggled to generate revenue from social e-commerce By Warren Yang What do you do when your original peer-to-peer (P2P) lending business becomes the subject of an intense government clampdown? Turn to the less controversial e-commerce sector. And when you discover that’s…

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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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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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