Qudian to Lose Contract With Ant Financial; Stock Plunges 8%
The Beijing-based peer-to-peer firm provides consumer loans and has been operating through Alipay, Ant’s online payments app, and using Ant’s credit scoring system.
Qudian's stock price plunged in early trading Thursday on news that the FinTech unicorn Ant Financial, an affiliate of Alibaba Group Holding Ltd. (NYSE: BABA), would not renew its soon-to-expire contract with the microlender, as reported by Bloomberg.
Qudian Inc. (NYSE: QD), a Beijing peer-to-peer firm that provides consumer loans, has been operating through Alipay, Ant's online payments app, and using Ant's credit scoring system. The partnership between the two companies has been active for three years.
News of the terminating contract sent Qudian's stock to $7.12 per American depositary share in early trading Thursday, down nearly 8 percent.
(Source: Thomson Reuters Eikon)
Bernstein, calling the termination of the contract an existential threat to Qudian, downgraded the microlender to "market perform," with a target of $7 per share.
Qudian said it plans to release second-quarter financials on Aug. 24.