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
Belinda ZhouFeb 06,2020,07:55

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’ less concern on 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. As the company 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 were from sectors of hotels, healthcare and internet, while the market gainers varies in different sectors, including online used car marketplace, real estate services and so on.

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) down 3% without English or Chinese news. 

Benchmarks in China or the U.S. showed positive signals. The Dow Jones Industrial Average 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 by 1.25% and 2.14%, closing Wednesday at 2818 and 10,305, respectively. The Chinese stock markets in the two cities suffered a close-to-limit loss of nearly 8% when it reopened Monday.

The growth rate of confirmed injection by the coronavirus in China was decelaratin, with 24554 confirmed cases globally, according to World Health Organization by Feburary 5.

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