Pintec Skyrockets 21% on Partnership With China Financial Giant, West Guarantee
Navigating in China's turbulent financing sector, Pintec hopes the new collaboration will secure its path forward.
Pintec Technology Holdings Ltd. (Nasdaq: PT) announced on Thursday it has partnered with West (Yinchuan) Guarantee Co. Ltd., sending its shares nearly 21% higher to $2.21 apiece at close.
The collaboration seeks to improve the efficiency of the two companies' financial services by leveraging technologies such as big data and advanced risk management models, according to the statement.
Based in Beijing, Pintec provides installment loans, personal loans, SME loans, wealth management and insurance brokerage. West Guarantee, one of the largest financial services providers in China, was founded in 2014.
Raising $44 million in its IPO in October 2018, Pintec has traded well below its issuance price of $11.88 per American depositary share. In May, Pintec announced it received a warning from the Nasdaq for failing to file its 2018 annual financial report by the deadline, after which its shares slid from trading above $8 per share. During June, Pintec's stock slid as low as $2.80 per ADS.
Pintec claims to be partnered with more than 40 companies including China's top search engine, Baidu Inc. (Nasdaq: BIDU) and online travel provider Trip.com Group Ltd. (Nasdaq: TCOM). The announcement of its partnership with West Guarantee was received well by the markets.
Like many other Chinese fintech companies, Pintec has struggled with tightened regulations Beijing implemented over the past few years.