Stocks Jump as Coronavirus Concerns Ease; China's Fintech Firms Not so Lucky
Chinese Fintech firms lose on an otherwise good day for the markets
Five China-based fintech companies for credit services dropped more than 5% Wednesday when the U.S. stocks rallied on the narrowed trade gap in the U.S. and investors' easing concerns about China's coronavirus outbreak.
New York-listed Hexindai Inc. (Nasdaq: HX) ranked as the largest loser, down 19%. The peer-to-peer lending company lost more than 55% of its stock price since 2020, closing at $0.42 per American depositary share Wednesday.
Hexindai is not the only consumer lending marketplace struggling. Stocks in another Beijing-based Yiren Digital Ltd. (NYSE: YRD) followed Hexindai closely, tanking 11% Wednesday to $4.21 per ADS.
Stock in Shanghai-based CLPS Inc. (Nasdaq: CLPS) dropped 10%, wiping out its 12% gain Tuesday on its announcement of a new subsidiary in Hong Kong for the credit card service. Fintech company Future FinTech Group Inc. (Nasdaq: FTFT) lost 7% after it gained 11% Tuesday. While the company has doubled its stock price since 2020, its stocks were, however, trading below $1 per ADS despite several stock reverse splits.
LexinFintech Holdings Ltd. (Nasdaq: LX) saw its stock down 5% to $13.29 per ADS. However, Jianpu Technology Inc. (NYSE: JT), a Beijing-based fintech platform, gained 8% and asset manager Wins Finance Holdings Inc. (Nasdaq: WINS) soared 11% Wednesday.
Other laggards came from the healthcare and internet sectors. Market gainers came from many different sectors, including online used car marketplaces and real estate services.
Leju Holdings Limited (NYSE:LEJU), offering online to offline real estate services in China, saw its stock soar 13% Wednesday. Beijing-based used car dealer Kaixin Auto Holdings (Nasdaq: KXIN) up 9% on the day in the U.S.
The auto sector witnessed Tesla Inc. (Nasdaq: TSLA)'s worst day in 2020, as stocks in the electrical giant plummeted about 17% on Wednesday. Its Chinese peer Nio Inc. (NYSE: NIO) fell 3%.
Benchmarks in China and the U.S. showed positive signals. The Dow Jones increased 483 points to 29291, or 1.68% Wednesday. The S&P 500 advanced 1.13% to 3335. The tech-heavy Nasdaq Composite Index moved 0.43% higher to 9509 points.
Two China benchmark stock indices, the Shanghai Composite and the Shenzhen Composite, continued to increase, rising 1.25% and 2.14% Wednesday and closing at 2818 and 10,305, respectively. The Chinese stock markets in the two cities suffered a close-to-limit loss of nearly 8% when they reopened Monday.